EU Slaps Tariffs on Russian, Belarusian Imports to Cut War Funds

- The EU adopted new tariffs on agricultural products and fertilizers. - These measures aim to cut Russia's export revenues and enhance EU economic security. On June 12, 2025, The Kyiv Independent reported that the Council of the EU adopted new tariffs on certain agricultural products and fertilizers imported from Russia and Belarus. The EU intends for these new tariffs to reduce its reliance on these imports and decrease Russia's export revenues, which fund the war in Ukraine. Additionally, the tariffs aim to bolster the EU's economic security. The tariffs will affect goods that previously did not face additional EU customs duties. In 2023, these targeted goods constituted approximately 15% of all agricultural imports from Russia. Furthermore, tariffs on fertilizers, particularly nitrogen-based products, will gradually increase over a three-year transition period designed to protect European farmers and fertilizer producers. Specifically, these tariffs will begin with a 6.5% increase on fertilizers, while duties will also range between €40 and €45 per tonne for 2025 and 2026. The EU projects these duties will eventually reach €430 per tonne by 2028. This decision aligns with a proposal the European Parliament backed in May 2025, which sought to increase tariffs by 50% on other agricultural products from Russia and Belarus, including flour, sugar, vinegar, and animal feed. European farmers, however, have expressed concerns about potential price increases, noting that Russian fertilizers have been a competitive option due to well-established logistics channels; for instance, in 2023, Russia supplied more than 25% of the EU's nitrogen-based fertilizer imports. Michał Baranowski, Poland's Undersecretary of State for Trade, whose country currently holds the Council's rotating presidency, stated that these tariffs would enhance the EU's economic security and reduce Russia's ability to finance the war. This development follows a decision the EU made on June 6, 2025, when it reinstated pre-war duties and quotas on Ukrainian agricultural products, an action prompted by European farmers' concerns about Ukrainian imports impacting local prices. Meanwhile, Brussels and Kyiv are currently negotiating to establish a new long-term trade agreement. According to CoinMarketCap on June 12, as of 14:00 UTC, Bitcoin (BTC) is trading at $30,500, and its 24-hour trading volume has decreased by 1.5%.