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Grupa Azoty SAEP backs voting to increase tariffs on fertiliser import to EU from Russia and Belarus
In Thursday voting, the European Parliament has backed increasing the tariffs on fertilisers and certain agricultural goods imported to EU from Russia and Belarus. The tariffs rate is to rise gradually in the next three years.
The new legislation provides for a 6.5 percent tariff on fertiliser imported from Russia and Belarus, plus duties of between EUR 40-45 per tonne for 2025-2026.
"These tariffs will rise to EUR 430 per tonne by 2028. Income from the sale of Russian and Belarussian fertilisers is considered to be contributing directly to the war against Ukraine," the EP said on its website.
Fertiliser imports from Russia to the EU have increased significantly in recent years, posing a problem for EU producers who are finding it increasingly difficult to cope with competition from the country.
Fertiliser production uses gas, which is much cheaper in Russia. In addition, the EU fertiliser production sector is less competitive because it bears the costs of the EU's climate policy - the EU Emissions Trading Scheme.
In 2023, EU countries bought 3.6 million tonnes of fertiliser from Russia for EUR 1.28 billion, and by 2024, they had already bought 4.4 million tonnes for EUR 1.5 billion. This money fuels the Kremlin's war machine and the invasion of Ukraine.
Meanwhile, in 2023, EU fertiliser production reached only 14 million tonnes, against an average of 18 million in the previous five years. Despite the closure of some production facilities in EU countries, the European industry has around 20 percent spare capacity of around 3 million tonnes.
That is why the European Commission has proposed an increase in tariffs on fertilisers from Russia, and the European Parliament on Thursday backed the proposal.
On January 29, the deputy CEO of listed chemicals group Azoty Hubert Kamola said that the group assessed the European Commission's proposal to impose duties on certain agricultural products and nitrogenous fertilisers from Russia and Belarus as "good news" for the domestic fertiliser industry.
Poland's Ministry of State Assets has been expressing its hope that the EU idea will support Polish fertiliser producers and improve their profitability.
luo/ jz/ ao/ han/
