EU ready to tax Russian fertilisers as early as July
BRUSSELS : EU lawmakers are set to greenlight tariffs on fertiliser imports from Russia today, despite European farmers' fears the move risks sending global prices soaring.
Over a quarter of the 27-nation bloc's imports of nitrogen-based fertilisers come from Russia, with more entering from Moscow's ally Belarus, which the European Commission now seeks to bring to an end.
Seeking to allay farmers' worries, Brussels says it will impose the duties from July and gradually increase them up to 2028 until they reach a level that would fully cut off the flow.
Three years after Russia's invasion of Ukraine, the EU must stop fuelling 'the Russian war machine' and 'limit the dependency of Europe's farmers to Russian fertilisers', said lawmaker Inese Vaidere, spearheading the push in the EU parliament to impose the tariffs.
Barring any last-minute drama, the European parliament is expected to approve the tariffs – although some right-wing lawmakers had been calling for a one-year suspension.
The move is not welcomed by farmers.
With rising production costs, pan-European farmers' group Copa-Cogeca explained, using Russian fertilisers was 'the most competitive in terms of price, due to well-established logistics' for supplying the EU.
Brussels also intends for the levies to prevent the indirect export of Russian gas, which is used to produce fertilisers.
The EU also wants to increase the bloc's own fertiliser production, and its moves are welcomed by the fertiliser industry in the bloc.
'Time is running out. We've been basically calling for action at the EU level for three years,' said Tiffanie Stephani of Norwegian fertiliser manufacturer Yara.
However, she admitted the farmers' concerns were 'more than legitimate'.
'Punishing farmers'
The EU has its work cut out to reassure farmers, who are already angry about administrative burdens, squeezed revenues and what they see as unfair competition from less-regulated overseas rivals.
The tariff could be 'potentially devastating' for the agriculture sector, warned Copa-Cogeca, adding: 'European farmers must not become collateral damage'.
A farmer in central Belgium, Amaury Poncelet, accused the EU of hurting the sector.
After spreading nitrogen fertiliser on his field in Berloz – which he buys from a dealer in Ghent without knowing where it comes from – the grain and beet farmer said he 'doesn't understand the EU's idea of punishing its farmers'.
'We're losing money because of these European decisions that treat us like pawns who don't matter,' he said.
The EU has suggested that duties on imports from North Africa, Central Asia, the US, Trinidad and Tobago, and Nigeria could be removed to alleviate pressure on prices, among other mitigating measures, should the duties lead to price shocks.
Yara's Stephani pointed to estimates showing that, with tariffs on Russian imports, there would be an increase of fertiliser prices of five to 10 dollars per tonne 'because of different logistic costs'.
Prices vary, but a tonne of nitrogen fertiliser is currently worth around US$400.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
15 minutes ago
- Malay Mail
Aeroflot cancels over 40 flights after tech failure sparks airport chaos
LONDON, July 28 — Russian airline Aeroflot cancelled dozens of flights on Monday after what it called a failure in its information systems. The national carrier did not provide further details about the cause of the problem or how long it would take to resolve. Since Russia launched the warin Ukraine in February 2022, travellers in Russia have become accustomed to flight disruptions. However, those delays have usually been caused by temporary airport closures after drone attacks. Aeroflot said that 'specialists are currently working to minimize the impact on the flight schedule and to restore normal service operations'. On Telegram, it listed more than 40 cancelled flights to destinations across Russia, as well as to the Belarusian capital Minsk and the Armenian capital Yerevan. Aeroflot urged passengers whose flights from Moscow's Sheremetyevo airport had been cancelled to retrieve their checked-in luggage and leave. News outlet Baza reported scenes of chaos at the airport, with logjams forming as passengers queued just to get out. Aeroflot, which despite sanctions imposed on Russia for its war in Ukraine that have drastically limited travel and routes, remains among the top 20 airlines worldwide by passenger numbers. In 2024, passenger traffic of the Aeroflot Group reached 55.3 million passengers, according to a statement on the airline's website. — Reuters
Malay Mail
15 minutes ago
- Malay Mail
Russia launches first direct flights to N. Korea amid deepening wartime alliance
MOSCOW, July 28 — Russia on Sunday began direct commercial flights to North Korea, in a further sign of closer ties with its Asian ally helping its offensive in Ukraine. The first Moscow-Pyongyang flight, operated by Russia's Nordwind Airlines, took off at 1625 GMT, according to the Sheremetyevo airport's website. It is scheduled to land in the North Korean capital some eight hours later. But initially, the route will only be serviced once a month, Russia's transport ministry said. Nordwind Airlines — which used to carry Russians to holiday destinations in Europe before the EU imposed a ban on Russian flights — had tickets priced at 45,000 rubles (RM2,410). 'This is a historical event, strengthening the ties between our nations,' Oleg, a Nordwind employee managing the flight who did not want to give his full name, told AFP at the airport. He also declined to say how many passengers were on board. 'For the first time in more than 70 years of diplomatic relations, we are launching direct flights between the capitals of our countries,' Russia's deputy transport minister Vladimir Poteshkin was quoted as saying by the ministry's Telegram account. Russia's state news agency TASS reported that the first return flight from Pyongyang to Moscow would take place on Tuesday. Russia and North Korea restored train links on June 17 after suspending them in 2020 during the Covid pandemic. The two countries have been forging closer military bonds in recent years, with Pyongyang supplying troops and weapons for Russia's military operations in Ukraine. They signed a mutual defence pact last year, when Russian President Vladimir Putin visited North Korea. North Korea confirmed for the first time in April that it had deployed a contingent of its soldiers to the frontline in Ukraine, alongside Russian troops. — AFP
New Straits Times
an hour ago
- New Straits Times
Stock markets boosted after EU, US strike trade deal
HONG KONG: Stock markets rose in Europe and Asia on Monday after the European Union and United States hammered out a deal to avert a potentially damaging trade war. News of the deal, announced by Donald Trump and European Commission head Ursula von der Leyen on Sunday, followed a series of US trade agreements last week, including with Japan, and comes ahead of a new round of China-US talks. Investors were also gearing up for a busy week of data, central bank decisions and earnings from some of the world's biggest companies. Trump and von der Leyen announced at his golf resort in Scotland that a baseline tariff of 15 per cent would be levied on EU exports to the United States. "We've reached a deal. It's a good deal for everybody. This is probably the biggest deal ever reached in any capacity," Trump said, adding that the levies would apply across the board, including for Europe's crucial automobile sector, pharmaceuticals and semiconductors. Brussels also agreed to purchase US$750 billion worth of energy from the United States, as well as make US$600 billion in additional investments. "It's a good deal," von der Leyen said. "It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic." Equities built on their recent rally, fanned by relief that countries were reaching deals with Washington. Paris rose more than one per cent at the open, with Frankfurt and London also tracking gains in Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta. Tokyo fell for a second day, having soared about five per cent on Wednesday and Thursday in reaction to Japan's US deal. Singapore, Manila and Mumbai were also lower. The broad gains came after another record day for the S&P 500 and Nasdaq on Wall Street. "The news flow from both the extension with China and the agreement with the EU is clearly market-friendly, and should put further upside potential into the euro... and should also put renewed upside into EU equities," said Chris Weston at Pepperstone. Traders are gearing up for a packed week, with a delegation including US Treasury Secretary Scott Bessent holding fresh trade talks with a Chinese team headed by Vice Premier He Lifeng in Stockholm. While in April both countries imposed tariffs that reached triple digits, US duties this year have temporarily been lowered to 30 per cent and China's countermeasures slashed to 10 per cent. The 90-day truce, instituted after talks in Geneva in May, is set to expire on Aug12, 2025. Also on the agenda are earnings from tech titans Amazon, Apple, Meta and Microsoft, as well as data on US economic growth and jobs. The Federal Reserve's latest policy meeting is expected to conclude with officials standing pat on interest rates, though investors are keen to see what their views are on the outlook for the rest of the year in light of Trump's tariffs and recent trade deals. "We think the data supports a Fed on hold in July, but absent a significant upside surprise in the upcoming inflation data, September could be a 'live' meeting for a resumption of rate cuts, especially if economic activity data and possibly overwhelming political pressure force the Fed's hand," said Michael Krautzberger at Allianz. The Bank of Japan is also forecast to hold off on any big moves on borrowing costs.
