The EU drastically increases tariffs on Russian food and fertilizers.

The EU aims to topple the fertilizer giant Russia: By imposing higher tariffs on imports, European fertilizer production is set to be bolstered, and the financing of the Ukraine war thwarted.

For agriculture, the EU Parliament has today (May 22) approved higher tariffs on fertilizers and some agricultural products coming from Russia and Belarus into the European Union with a large majority.

Following the EU Parliament's decision today, tariffs on Russian sugar, vinegar, flour, and animal feed will be increased by 50 percent. These products had not previously been subject to additional tariffs. The Parliament is thus following the recommendation of the EU Commission.

Imported fertilizers from Russia and Belarus are set to have a tariff rate of 6.5 percent imposed. Additionally, a fixed tariff of 40 to 45 euros per ton is planned to run until the end of 2026, as announced by the EU Parliament. Subsequently, the amount will increase to 430 euros per ton by 2028.

The EU has become heavily dependent on Russian fertilizers. The import of fertilizers from Russia had significantly increased last year, with a reported 33 percent rise according to Reuters. The EU Commission views the recorded fertilizer imports as an economic dependence on Russia, jeopardizing not only the EU's food security but also giving Russia leverage in the fertilizer sector.

Revenue from the sale of Russian and Belarusian fertilizers is considered direct financing for the war against Ukraine. According to media reports, an estimated two million euros flow daily from German agriculture into the Russian war effort.

Brussels aims to halt this financing with the additional tariffs. "This regulation, gradually increasing tariffs on products from Russia and Belarus, will help prevent Russia from using the EU market to finance its war machinery," confirmed Inese Vaidere, the EU's rapporteur on Russia.

The tariffs on agricultural products and fertilizers from Russia are intended to lead to a significant reduction in the EU's imports of these goods, even if they come indirectly from Russia or Belarus. This, according to Brussels authorities, will revitalize fertilizer production in the EU as the cheap imports from Russia posed significant competition to EU producers.

Mainly, the pressure from the cheap natural gas that Russian producers can access is affecting major German producers such as Ineos Manufacturing Deutschland in Cologne, Domo Caproleuna in Leuna in Saxony-Anhalt, SKW Piesteritz in Wittenberg, and Yara in Brunsbüttel and Rostock.

The Commission, on the Parliament's regulation, will monitor price increases and potential damages to the EU's internal market or agricultural sector and take measures to mitigate the impacts if necessary.

The regulation must now be formally accepted by the Council and subsequently published in the Official Journal before it can come into effect.