Source: Oleoscope (Russia)
The introduction by the European Union of duties on agricultural products from Russia, including fertilizers, will lead to an increase in global food prices, Igor Golubovsky, Russia’s permanent representative to the Food and Agriculture Organization of the United Nations (FAO) and other international organizations in Rome, said in a conversation with a TASS correspondent.
According to him, agricultural producers in Europe will also feel the negative consequences: “Many analysts, including those from countries that are hard to suspect of sympathizing with Russia, have already noted that this will lead to negative consequences for agricultural producers in Europe and to a further increase in consumer food prices,” the diplomat said, commenting on the European Commission’s proposal to impose duties on some agricultural products from Russia and Belarus, as well as on some nitrogen fertilizers. As experts have estimated, according to preliminary calculations, the duties will affect 15% of agricultural imports from Russia from the volumes of 2023, which previously did not fall under the restrictions.
Golubovsky noted that this decision, which is aimed at hurting Russia, threatens to boomerang on the European and global agricultural sector.
Russia is one of the world leaders in the production of several agricultural fertilizers. Various EU countries have already detained cargoes of Russian fertilizers at their ports, blocking their supply, with negative consequences, mainly for some developing countries where crop yields and food security depend on the availability of fertilizers.
From July 1, 2024, the EU has already imposed barrier duties on certain agricultural products from Russia and Belarus. Thus, the duty on soft wheat, oilseeds and processed products was set at €95 per ton, durum wheat – €148 per ton, barley and rye – €93 per ton. The new duties provide for a 50% tax on top of the current rate. For nitrogen fertilizers, the duty may amount to 6.5% + a levy of €40-430 per ton (depending on the delivery period and type of fertilizer).