본문 바로가기
bar_progress

Text Size

Close

EU Announces 50% 'Tariff Bomb' on Russian Grain... Effectively Banning Imports

Seems to Reduce Russian Profits Considering Farmers' Protest

The European Union (EU) on the 22nd (local time) announced a 'tariff bomb' targeting grains from Russia and Belarus.


The European Commission, the EU's executive body, proposed imposing a tariff of 95 euros per ton or 50% of the import price on grains, oilseeds, and related derivatives imported into the 27 EU countries from Russia and Belarus. This is effectively a ban on imports.


Valdis Dombrovskis, the EU's Executive Vice-President, said on X (formerly Twitter), "The high tariffs are intended to make related imports unprofitable and reduce the profits of the aggressor, effectively banning imports into the EU market."


If this proposal is approved by a qualified majority vote (at least 55% of member states representing at least 65% of the EU population) at the Council of the 27 countries as early as next month, it will be implemented immediately.


If the EU's new tariff imposition is confirmed, Russia may retaliate.


An EU senior official, speaking anonymously at a pre-briefing on the same day, explained, "Currently, grains from Russia and other third countries have either no separate tariffs or low tariffs ranging from 1% to 6%, depending on the type."


This measure applies only to grains sold within the EU market. Grains transiting through the EU to third countries are not subject to this.


EU Announces 50% 'Tariff Bomb' on Russian Grain... Effectively Banning Imports [Image source=Reuters Yonhap News]

An EU official explained that this measure aims to prevent market instability in the EU caused by a surge in low-priced Russian and Belarusian grain imports and to prohibit the practice of exporting grain stolen from Ukraine disguised as Russian-origin grain.


According to the World Trade Organization (WTO) agreements, export-import regulations are exceptionally allowed under national security grounds, so this is not considered a violation of international law.


Despite this explanation, various analyses have emerged regarding the sudden decision to impose high tariffs on Russian grain two years after the outbreak of the Ukraine war.


According to the Commission, Russian-origin products currently account for about 1% of the entire EU agricultural market. Based on statistics alone, it is difficult to see a significant impact on overall market prices.


There is an interpretation that this move takes into account farmers' protests across Europe and internal conflicts surrounding Ukrainian grain.


Recently, as farmers' protests against the surge in Ukrainian grain imports spread across Europe, the EU decided to effectively reduce tariff exemptions on agricultural and livestock products previously provided under the pretext of supporting Ukraine.


As a result, Ukraine has expressed dissatisfaction, causing friction.


Ukrainian President Volodymyr Zelensky also stated in a video speech at the EU summit the day before, "Unfortunately, Russia faces no restrictions in accessing the European agricultural market," calling it "unfair."


When asked whether this was a solution to the conflict over Ukrainian grain, an EU official refused to answer, saying, "I will not take political questions."


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

Special Coverage


Join us on social!

Top