On January 28, 2025, the European Commission adopted a proposal for a regulation to impose new duties on nitrogen fertilisers from Russia and Belarus. (1)
1) EU duties on agricultural imports from Russia
The European Commission had already introduced additional duties on wheat arriving from Russia and Belarus, in March 2024. Although the protest of European farmers, as it turned out, was instead about imports from Ukraine of much different quantities of agricultural commodities at zero duty. (2)
New additional duties, according to the new proposal of the European Commission, should now be applied to the remaining share of agricultural imports from Russia and Belarus, 15% in value of the total, consisting of nitrogen and non-nitrogen fertilizers. In addition to a general increase in tariffs.
2) Motivations
The Eurocrats who in 2022 had predicted Russia’s isolation and economic collapse – following EU sanctions that instead brought down its own member countries – are once again saying they want:
– ‘to hit Russian export revenues and Moscow’s ability to wage war in Ukraine’. (3) As if the previous sanctions and tariffs, of a much higher value, had had any result other than economic disaster in the EU;
– ‘reduce dependence on imports’ from Russia and Belarus. Without considering however – as already in the case of gas (4) – what alternatives are available today without involving higher costs for the sectors involved.
3) Import volumes and additional duties
Fertilizer imports in the EU from Russia reached 2023 million tonnes (€3,6 billion) in 1,28, over 25% of the total, and increased in 2024. Those from Belarus are insignificant (€93 million in 2023). The Commission’s proposal is however extended to both countries, due to their close economic and political ties. And it provides for:
– an increase in duties, ad valorem, from the current 6,5% to 13% until reaching 100% in three years. Or even sooner, in the event of an increase in volumes. And so the ‘prohibitive levels’ of 315 euros/ton for nitrogen fertilizers and 430 €/t for other fertilizers;
– a general increase in tariffs, ad valorem, + 50%, on all agricultural and food products. (1)
4) Urea and nitrogen fertilizers, what are the alternatives?
The new tariffs on nitrogen fertilizers, according to the European executive, ‘would support production in the domestic market and allow for diversification of supply elsewhere’. Ignoring that:
– the energy crisis caused by the Brussels sanctions (and the terrorist attack on the North Stream gas pipeline) has already forced producers of urea and nitrogen fertilizers to close their plants in the EU and UK, as we have seen; (5)
– the ‘diversification of the offer’ will inevitably be preceded by its serious shortage, and consequent increase in price lists. To which could be added higher costs and environmental impacts of transport.
5) European farmers, ready to pay?
The proposal adopted by the Commission on January 28, 2025 enters into force after its approval by the governments of the Member States and the European Parliament. Within a couple of months, if no one opposes this latest folly.
But European farmers – who by abstaining from voting in the last elections favored a second mandate for Ursula von der Leyen and the continuation of the EU’s war effort in a third country – will they be willing to pay the costs of this latest maneuver?
#PaceTerraDignità
Dario Dongo
Credit cover © Vladimir Gorovykh/TASS, Archive
Footnotes
(1) Proposal for a Regulation of the European Parliament and of the Council on the modification of customs duties applicable to imports of certain goods originating in or exported directly or indirectly from the Russian Federation and the Republic of Belarus. European Commission, DG Trade. 28.1.25 https://tinyurl.com/4jrwntvb
(2) Dario Dongo. Unfair competition, yet another mockery of farmers in the EU. FT (FoodTimes). March 24, 2024
(3) Philip Blenkinsop. EU plans tariffs on Russia, Belarus farm produces, fertilizers. Reuters January 28, 2025 https://tinyurl.com/3vnannsm
(4) Dario Dongo. Gas and electricity, an announced crisis. GIFT (Great Italian Food Trade).
(5) Dario Dongo. Nitrogen fertilizers and urea, black crisis in Europe. GIFT (Great Italian Food Trade).
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
