EU proposes import tariffs on Russian and Belarusian nitrogen-based fertilizers

Julia Meehan

29-Jan-2025

LONDON (ICIS)–The European Commission has adopted a proposal to impose tariffs on a number of agricultural products from Russia and Belarus, as well as on certain nitrogen-based fertilizers.

In the proposal, the first round of tariffs will come into place on 1 July 2025. For fertilizers, on top of the existing duty of 6.5%, the tariff would be subject to an additional specific duty that would gradually increase, starting at €40/tonne or €45/tonne, depending on the type of fertilizer (corresponding to around 13% in ad valorem equivalent).

The duty would increase to a prohibitive level of €315/tonne or €430/tonne respectively, three years after the start of the proposed regulation’s application (a level of about 100% in ad valorem equivalent).

In the three-year transitional period, the prohibitive tariffs would also be introduced if imports from Russia and Belarus are above certain specified volumes.

The increase in tariffs will not affect the transit of goods to countries outside the EU.

The agricultural products affected by the new tariffs constitute 15% of agricultural imports from Russia in 2023 that had not yet been subject to increased tariffs. Once adopted by the European Parliament and the Council, all agricultural imports from Russia would be the subject of EU tariffs.

The EU said the tariffs will support the growth of domestic production and the EU’s fertilizer sector, which has suffered during the energy crisis. They will also ensure a steady fertilizer supply and, most importantly, for fertilizers to remain affordable for farmers.

The proposal includes mitigating measures, should EU farmers see a substantial increase in fertilizer prices.

In the press release, the EU expected the tariffs to negatively impact Russian export revenues, thus impacting Russia’s ability to wage its war of aggression against Ukraine.

Major fertilizer producers in Europe have been lobbying the EU to take immediate action against Russian fertilizer imports.

The producers have called on the European Commission to act against the high volume of imports from Russia, in what is described as “unfair trade’ due to the impact of Russian and Belarusian imports.

They have expressed their frustration that the threat of Russian imports was not being taken seriously and not enough was being done to protect them ahead of the spring campaign which is now underway.

A week ago, German fertilizer company SKW Piesteritz said it had been forced to shut one of its two ammonia plants for an indefinite period because of cheap fertilizers from Russia, coupled with high costs in Germany and an unfavorable political climate.

Top Five European urea importers 2023

Importing country  Imports 2023 (tonnes)  Russian imports (%)
France Customs                         1,671,913 15
Poland Customs                         1,160,717 30
Spain Customs                            997,551 10
United Kingdom HMRC                            977,229 13
Germany Customs                            921,321 37

Calls for a 30% tariff on Russian and Belarusian imports on all fertilizers no later than February was described by one supplier to Europe as “a bold move ahead of the season”.

The new season for buying and application is underway in some parts of Europe. In areas where temperatures are higher than normal, urea will be applied in the next 7-10 days.

Aside from the impact of cheap Russian fertilizer on the EU, participants are also worried about Europe’s growing reliance on Russia imports, the potential threat to EU food supply and a derailing of the region’s plan to decarbonize.

It is widely discussed that Russia will push European fertilizer producers out of the market, and replace gas with fertilizer imports.

Urea is produced from ammonia and carbon dioxide. It has a 46% nitrogen content, which is the highest nitrogen content of any solid nitrogen fertilizer.  Urea can be applied by itself to the soil or mixed with phosphate and potash.

Thumbnail photo source: Shutterstock

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