Brussels says Russia is trying to influence the grain market in EU countries by exporting cheap grain, and that President Putin is also using the proceeds to fund the war against Ukraine.
The new EU measure against Russia applies to grains, oilseeds, and derivative products from Russia and Belarus. According to the proposal, the EU would impose an import tariff of 95 euros per ton, a sharp increase compared to the current zero tariffs.
During the Euro summit, Latvian Prime Minister Evika Siliņa and Lithuanian President Gitanas Nausėda called for a total ban on Russian grain, which would require sanctions. Until now, 'food' has been excluded from the European economic sanctions against Moscow due to the Russian war against Ukraine.
Ukrainian President Volodymyr Zelenskyy also addressed the issue in his virtual speech to EU leaders. “Unfortunately, Russian access to the European agricultural market remains unrestricted. And while shipments of Ukrainian grain are being destroyed and blocked, Russian products are still being transported to Europe,” Zelensky said.
"This is not fair," he said, referring to the still ongoing blockades by Polish farmers. Poland, Hungary, and Slovakia have imposed their own ban on Ukrainian food products, which continues to this day.
Despite efforts by Brussels to resolve this dispute, the EU has not yet managed to find a solution. Earlier this week, an agreement was reached to extend the free trade regime for Ukraine until 2025, with a 'safeguard' clause in case exports exceed the maximum of the past two years.
The proposal to now impose import duties on Russian exports still needs to be approved by the EU countries with a qualified majority, likely as soon as this Monday at the monthly Agriculture Council (LNV-Landbouwraad).