This will effectively mean that Russia will lose the entire European market for nitrogen fertilizers, more than a quarter of which it continues to control despite the war it unleashed in Ukraine.
Duties on nitrogen fertilizers will increase over three years from 6.5% to the equivalent of 100%, a level that will make products from Russia and Belarus unprofitable for European consumers and will effectively stop trade. An additional 50% tariff will apply to agricultural products, Reuters reports. The new rules are expected to come into force on July 1.
Although the EU has abandoned coal, the vast majority of oil and metals from Russia, and has been able to reduce its dependence on Gazprom from more than 40% of imports to 13% (including LNG, Russia's share is about 19%), it remains the dominant player in the fertilizer sector. According to Eurostat, their supplies increased by 13% in 2024, with various types accounting for between a quarter and a third of the EU's total imports. In total, Russia sold them last year for $1.8 billion.
Nitrogen fertilizers, against which duties are being introduced, were sold for $777 million, with their share of the EU market amounting to 26.2%, analysts at the Gaidar Institute note. The sales volume and share even increased slightly compared to the pre-war 2021, when they were $754 million and 25%, respectively. At the same time, for all other items, the shares and amounts decreased, sometimes significantly: for example, the share of mineral fertilizers fell from 41.2% to 33%, and for carbon - from 62.9% to 17.2%.
Such significant fertilizer imports make the EU vulnerable to possible pressure from Russia, which could threaten the bloc's food security, the European Commission said. The duties will support domestic production and diversify supplies, according to Brussels. The EU also believes that reducing purchases from Russia will help limit its income, which is used, among other things, to continue the war against Ukraine.
Russia may redirect nitrogen fertilizers to other markets after the introduction of prohibitive duties in the EU, said Vladimir Putin's press secretary Dmitry Peskov: "The demand for nitrogen fertilizers around the world, in other directions, is equally high, so I think that markets in other directions will compensate for these European duties. The Europeans continue, as always, to shoot themselves in the foot."
As for agricultural products, in 2024 the EU has already introduced prohibitive duties on Russian and Belarusian grain. The new tariffs apply to 15% of agricultural imports from Russia, which were previously not subject to duties, worth 380 million euros: this includes meat, dairy products, fruits and vegetables.
Duties on nitrogen fertilizers will increase over three years from 6.5% to the equivalent of 100%, a level that will make products from Russia and Belarus unprofitable for European consumers and will effectively stop trade. An additional 50% tariff will apply to agricultural products, Reuters reports. The new rules are expected to come into force on July 1.
Although the EU has abandoned coal, the vast majority of oil and metals from Russia, and has been able to reduce its dependence on Gazprom from more than 40% of imports to 13% (including LNG, Russia's share is about 19%), it remains the dominant player in the fertilizer sector. According to Eurostat, their supplies increased by 13% in 2024, with various types accounting for between a quarter and a third of the EU's total imports. In total, Russia sold them last year for $1.8 billion.
Nitrogen fertilizers, against which duties are being introduced, were sold for $777 million, with their share of the EU market amounting to 26.2%, analysts at the Gaidar Institute note. The sales volume and share even increased slightly compared to the pre-war 2021, when they were $754 million and 25%, respectively. At the same time, for all other items, the shares and amounts decreased, sometimes significantly: for example, the share of mineral fertilizers fell from 41.2% to 33%, and for carbon - from 62.9% to 17.2%.
Such significant fertilizer imports make the EU vulnerable to possible pressure from Russia, which could threaten the bloc's food security, the European Commission said. The duties will support domestic production and diversify supplies, according to Brussels. The EU also believes that reducing purchases from Russia will help limit its income, which is used, among other things, to continue the war against Ukraine.
Russia may redirect nitrogen fertilizers to other markets after the introduction of prohibitive duties in the EU, said Vladimir Putin's press secretary Dmitry Peskov: "The demand for nitrogen fertilizers around the world, in other directions, is equally high, so I think that markets in other directions will compensate for these European duties. The Europeans continue, as always, to shoot themselves in the foot."
As for agricultural products, in 2024 the EU has already introduced prohibitive duties on Russian and Belarusian grain. The new tariffs apply to 15% of agricultural imports from Russia, which were previously not subject to duties, worth 380 million euros: this includes meat, dairy products, fruits and vegetables.
