Despite three years of full-scale aggression by the Russian Federation against Ukraine, in 2024, European Union countries continue to import goods from Russia worth around 35 billion euros. Seven EU member states – Germany, Finland, Sweden, Latvia, Lithuania, Estonia, and Poland – have prepared a joint initiative called “Trade for Security.” They propose to introduce additional sectoral tariffs to gradually reduce trade with Russia and Belarus in strategically important sectors.
This is reported by Kyiv24
Key points of the document and import volumes
The joint document emphasizes that imports from Russia generate “significant revenue and fuel its military apparatus,” and also “directly harms European economic security, as it supports dependency in strategically important sectors.”
“Considering that the European steel sector is already facing challenges, it seems justified to consider measures that would mitigate the risk of further competitive disadvantages compared to subsidized Russian producers,” the document argues.
Despite 19 packages of EU sanctions and actions by the European Commission to reduce dependence on Russian energy resources, part of the imports remains unrestricted. In 2024, the EU imported the most from Russia:
- Oil and gas – 22.3 billion euros (65% of total imports from Russia);
- Iron and steel – 2.6 billion euros (8%);
- Fertilizers – 1.7 billion euros (7.5%);
- Nickel and aluminum – over 1.8 billion euros (together 6%);
- Inorganic chemicals, fish, and industrial equipment – about 1 billion euros.
Belarus also remains an important supplier of fertilizers and chemical products, so the proposals for new tariffs also cover this country.
Priority proposals for new tariffs
The seven initiating countries have identified three priority categories of goods to which new customs restrictions should be applied:
- Iron and steel. It is proposed to impose tariffs on Russian steel slabs, which are currently exempt from sanctions until 2028. This aims to protect European producers from dumping by subsidized Russian companies that do not pay an environmental tax on carbon emissions, unlike their European competitors.
- Inorganic chemicals. It is proposed to replace imports of ammonia and calcium phosphates from Russia with supplies from the USA, Canada, Israel, and Jordan. For the USA, the EU has already reduced the tariff on these chemicals from 5.5% to zero, creating favorable conditions for producers from this country.
- Potassium fertilizers. The initiative envisages reducing or eliminating the tariff quota on imports of potassium fertilizers from Russia and Belarus, which are still virtually unrestricted. This will help stop the decline in potassium production in the EU.
The document is advisory in nature; however, the initiating countries urge the European Commission to prepare relevant proposals for new tariffs as soon as possible. This will help reduce Russia’s and Belarus’s revenues from trade with the EU while strengthening the economic security of European states.