Blog

We keep you up to date on the latest tax changes and news in the industry.

Securing Europe's Breadbasket: EU's Bold Move on Russian Grain Tariffs

In a move aimed at safeguarding its markets and supporting Ukraine, the European Commission (EU) has proposed a tariff increase on grain imports from Russia and Belarus. The proposal, issued on March 22, 2024, seeks to address several pressing concerns and challenges the European Union faces.

European Union President Ursula von der Leyen spoke about the necessity of the tariffs, stating, "We propose the imposition of tariffs on these Russian imports to mitigate the growing risk to our markets and our farmers." She also noted the EU's commitment to upholding global food security while supporting Ukraine amidst the ongoing conflict that began when Russia invaded Ukraine in February 2022.

The proposed tariffs have several objectives:

  • Market Stability: The tariffs aim to prevent market destabilization in the EU by curbing potential surges in Russian grain imports, a concern voiced by the EU farming community.

  • Combat Illicit Trade: The tariffs seek to address the issue of Russian grain exports allegedly stolen from Ukrainian territories, which have sometimes been mislabeled as 'Russian'. By imposing tariffs, the EU aims to make this illicit trade unprofitable.

  • Economic Pressure: Additionally, the tariffs aim to hinder Russia's ability to finance its military actions in Ukraine by cutting off a significant revenue stream derived from grain exports to the EU.

The proposed measures extend to Belarus, given its close ties to Russia and its support for the Ukrainian conflict. By including Belarus in the tariff increase, the EU aims to prevent circumvention of the tariffs through Belarusian channels.

It's important to note that the proposed tariffs will not disrupt global grain supplies, as the transit of grain through the EU to other countries will remain unaffected. This reaffirms the EU's commitment to promoting food security globally, particularly in developing nations.

While the proposed tariffs are significant, government authorities have considered all potential implications. As Reuters notes, the EU has opted for tariffs over sanctions to limit market access without disrupting ancillary services such as transportation and financing. This approach is designed to balance economic measures with global geopolitical objectives.

The proposed tariffs come amidst broader discussions within the EU regarding agricultural policies and responses to the Ukrainian conflict. While there is broad consensus on the need to address farmer concerns and support Ukraine, debates persist about the most effective measures.

Looking ahead, the grain tariff proposal will undergo review by the Council of the European Union, with expectations of expedient adoption and implementation. The proposed tariffs, once approved, will serve as a tangible demonstration of the EU's commitment to defending its markets, supporting Ukraine, and upholding its values amidst international challenges.

As the EU navigates evolving geopolitical dynamics, the proposed tariff hike on Russian and Belarusian grain underscores the complex interplay between economic interests, geopolitical considerations, and global security concerns.

Frequently asked questions about the measure are addressed on the European Commission’s official website.

Share this article...

Sign up for our newsletter.

Each month, we will send you a roundup of our latest blog content covering the tax and accounting tips & insights you need to know.

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the and .

We care about the protection of your data.


“We are always looking to grow our business. Should you have any clients, friends, business associates looking for high quality accounting services from a CPA firm, please have them contact us.”

This e-mail (including any attachments) is only for the exclusive use of the individual to whom it is addressed. The information contained hereinafter may be proprietary, confidential, privileged and exempt from disclosure under applicable law. If the reader of this e-mail is not the intended recipient or agent responsible for delivering the message to the intended recipient, the reader is hereby put on notice that any use, dissemination, distribution or copying of this communication is strictly prohibited. If the reader has received this communication in error, please immediately notify the sender by telephone or e-mail and delete all copies of this e-mail and any attachments.

IRS Circular 230 Disclosure: In order to ensure compliance with IRS Circular 230, we must inform you that any U.S. tax advice contained in this transmission and any attachments hereto is not intended or written to be used and may not be used by any person for the purpose of (i) avoiding any penalty that may be imposed by the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matter(s) addressed herein.

Richards Group PC, CPA We love to chat!
Please feel free to ask a question, our Ai chat assistant would love to help.
Please fill out the form and our team will get back to you shortly The form was sent successfully