On Thursday, May 30, the Council adopted a regulation to impose high tariffs on grain products imported from Russia and Belarus. The regulation increases duties on cereals, oilseeds, and derived products, as well as beet-pulp pellets and dried peas, to the point that it will effectively stop imports of these products.
The EU’s imports of grain products from Russia have significantly increased since Russia’s full-scale invasion of Ukraine on February 24 2022. Although the Russian Federation remains a relatively small supplier of those products to the EU market, it is a leading global producer and exporter. Given its current export volumes to the world, Russia could redirect significant supplies of those products to the EU, resulting in a sudden influx from its large existing stocks, disrupting the EU market. Furthermore, there is evidence that the Russian Federation is currently illegally appropriating large volumes of such products in territories of Ukraine, which it illegally occupies, and routing them to its export markets as allegedly Russian products.
Currently, importers face low or no tariffs on these goods, but the new regulation will change that. Additionally, these products will no longer be able to access the Union’s tariff rate quotas. These measures apply to products originating in or exported directly or indirectly from Russia or Belarus to the EU. Transit through the EU from these countries to other third countries will not be affected. The measures will come into effect on July 1, 2024.
“These measures will, therefore, prevent the destabilisation of the EU’s grain market, halt Russian exports of illegally appropriated grain produced in the territories of Ukraine and prevent Russia from using revenues from exports to the EU to fund its war of aggression against Ukraine. This is yet another way in which the EU is showing steady support to Ukraine,” explained Vincent Van Peteghem, the minister for finance of Belgium.
