FX.co ★ EU hikes tariffs on Russia, Belarus grain imports

European Union leaders have turned their focus to a pressing issue: how to tighten their grip on Russia's key revenue streams. After much deliberation, they have agreed to raise tariffs on Russian grain imports starting July 1, 2024.

In addition to curbing the Kremlin’s revenues, the bloc aims to prevent Russian imports from destabilizing the region's agricultural sector.

Russia is not the only country to be hit by tariff hikes. "Prohibitive" duties will also apply to Belarusian grain exported to European countries. This measure is set to come into force on the same day.

The new tariffs will affect imports of cereals, oilseeds, and derived products from Russia and Belarus. Experts predict that the impact of these restrictions will be so severe that it "will in practice halt imports of these products."

Notably, in 2023, Russia exported 4.2 million tons of cereals and oilseeds to the EU.