Historical decision – Russian fertilizer output begins to be restricted

Russia has been in an offensive war in Ukraine for more than three years, but it is only now that the EU has decided to start restricting the import of Russian fertilizers to EU countries.

On Friday, the Ambassadors of the EU countries approved the Commission’s proposal that the EU will begin to inherit additional support from Russian and Belarusian nitrogen-based fertilizers. In addition, duties will begin to be ordered for the remaining 15 % of agricultural products from Russia and Belarus, which are not yet covered by customs restrictions.

The decision was approved by a qualified majority at the Ambassador’s meeting. Next, the matter will be discussed in joint negotiations with the Member States Council and the EU Parliament. The aim is to bring the nitrogen fertilizers into force as soon as possible.

The decision does not affect the export of Russian agricultural products and fertilizers to non -EU countries, which corresponds to the EU commitment to promote food security globally, especially in developing countries.

Russia’s dependence is reduced

The aim of the reform is to reduce dependence on Russia.

Customs are expected to negatively affect Russia’s export income and, consequently, to Russia’s ability to winning an offensive war against Ukraine.

At the same time, EU food security can be improved, which can be at risk if Russia begins to tighten EU countries with fertilizers.

The customs also support the growth of the EU’s own fertilizer industry.

In order to ensure a controlled transition, the hardened duties are expected to enter into force in stages in three years.

Are prices rise?

Member States have been concerned about the potential rise in prices and availability of fertilizers from nitrogen fertilizers from Russia.

The Commission promises to closely monitor the price increase. The year 2024 will be taken for the reference year.

In addition, the proposal includes support measures if EU farmers find that fertilizer prices will increase significantly.

In practice, the most significant support is that nitrogen fertilizers from other countries other than Russia and Belarus will be exempt from EU subsidies for a fixed period.