Tariffs on Russian and Belarusian Grain Exports: Solidarity with Ukraine and Economic Strategy

Written by Connor Foster | March 25, 2024

European Commission President Ursula von der Leyen

As a display of solidarity with Ukraine, the European Union (EU) is in the process of imposing tariffs on grain exports from Russia and Belarus. This action will compound previous economic sanctions imposed on Russian companies involved in military endeavors, the diamond industry, crude oil, and financial institutions. This purpose of this latest tariff plan is threefold, aiming to protect the EU from economic distortions, satisfy European farmers who are clamoring for greater protection, and placing a limit on Russia’s financial ability to fund the war. Russia has been also benefiting from the sale of stolen Ukrainian grain on the international market, which is inflicting further economic damage on the war-torn country. European Commission President Ursula von der Leyen has stressed the EU position that the bloc will not do anything that benefits Russia during this war and is still committed to promoting food security worldwide. 

According to the plan, tariffs will raise prices by 50% or impose duties of 95 euros per metric ton. In order to make up for the gap in grain imports the EU plans to increase imports from countries such as the US, Ukraine, and Brazil, among others. Officials in Russia have stated that they have many other markets to export grain to besides the EU and therefore the tariffs will inflict more harm on European consumers. As current imports stand, Russian grain shipments to the EU are already much lower than those of other states, especially Ukraine. Therefore, it seems as if the actual effect of the tariffs will be more of a symbolic display than an actual attack on Russia’s revenue.