The EU is considering introducing a tariff on wheat from Russia

Wheat

Published Mar 21, 2024

Tridge summary

The European Commission is contemplating imposing a €95 per ton duty on grain imports from Russia and Belarus, and a 50% duty on oilseeds and their processed products, to reassure EU farmers and member states. This could impact European livestock farming and domestic suppliers of oil and fat products in Russia. In 2023, the EU imported a record 4 million tons of grains and oilseeds from Russia, which is about 1% of the total consumption. Russia, supplying 70% oilseeds and 30% wheat, is among the largest grain importers in the EU, accounting for 6% of European grain imports, primarily purchased by Spain and Italy.

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Original content

The duty of €95 per ton for grain and oilseeds, which is being discussed by the European Commission, will not be critical for Russia. But domestic wheat will lose the Italian market, and the refusal of Russian products will hit European livestock farming. On Tuesday, March 19, the Financial Times (FT), citing sources, reported that the European Commission is going to introduce duties on grain imports from Russia and Belarus in the coming days in the amount of €95 per ton. Duties of 50% will also be established on oilseeds and their processed products. According to the publication’s interlocutors, the introduction of a duty on Russian and Belarusian grain will lead to an increase in prices “by at least 50%” and will reduce demand to zero. Experts interviewed by RBC believe that such a measure will not be critical for Russian grain exporters, but could affect domestic suppliers of oil and fat products and seriously hit European livestock farming. What the introduction of a duty will ...

Source: Rosng