Parliament supports proposals to simplify EU carbon leakage instrument

This article is brought to you in association with the European Parliament.

MEPs backed increased tariffs on fertilisers and certain Russian and Belarusian agricultural goods on Thursday, seeking to reduce EU dependency on those imports.

Plenary has endorsed the Commission proposal to increase by 50% EU tariffs on agricultural products from Russia and Belarus that were not yet subject to extra customs duties. The aim is to reduce EU dependence on the two countries still further. Products to be hit by the new tariffs include sugar, vinegar, flour and animal feed.

The text also provides for a 6.5% tariff on fertilisers imported from Russia and Belarus, plus duties of between €40 and €45 per tonne for the 2025-2026 period. These tariffs will rise to €430 per tonne by 2028. Income from the sale of Russian and Belarussian fertilisers is considered to be contributing directly to the war against Ukraine.

The proposed measures will reduce EU imports of the goods concerned significantly, whether they originate in the two countries or are exported directly or indirectly by them. It is expected that this will result in further diversification of EU fertiliser production, currently impacted by the low prices of imports.

The legislation also tasks the Commission with monitoring price increases and any possible damage to the internal market or the EU agriculture sector, and with taking action to mitigate the impact.

The regulation was adopted by 411 votes in favour and 100 against, with 78 abstentions.

Quote

The standing rapporteur for Russia Inese Vaidere (EPP, LV) said: “The regulation gradually increasing customs duties for products from Russia and Belarus will help to prevent Russia from using the EU market to finance its war machine. It is not acceptable that three years after Russia launched its full-scale war, the EU is still buying critical products in large volumes, in fact, these imports have risen significantly.

The proposal will boost EU fertiliser production, which has taken a hit from cheap Russian imports, while giving farmers time to adjust.

Importantly, the proposal also includes monitoring provisions enabling the Commission to follow the fertiliser market closely and take action if prices shoot up.”

Next steps

With approval in plenary, Parliament closed its first reading. The regulation must now be adopted formally by the Council and subsequently published in the Official Journal, before it can enter into force. For the remaining agricultural products (listed in Annex I of the proposal), the regulation will apply four weeks after the bill’s entry into force.

Background

Imports into the EU of urea and nitrogen-based fertilisers from Russia, already high in 2023, rose significantly in 2024. According to the Commission, imports of the fertilisers covered by this regulation reflect a situation of economic dependence on Russia. If left unchecked, the situation could harm EU food security and, in the case of fertilisers in particular, leave the Union vulnerable to possible coercive measures by Russia.

It was to address these issues that the Commission presented its proposal to impose tariffs on fertilisers and certain agricultural products originating in Russia and Belarus, on 28 January 2025.