EU ready to tax Russian fertilisers as early as July
A farmers' group said using Russian fertilisers was the most competitive in terms of price, due to well-established logistics for supplying the EU. (Shippingwatch pic)
BRUSSELS : EU lawmakers are set to greenlight tariffs on fertiliser imports from Russia today, despite European farmers' fears the move risks sending global prices soaring.
Over a quarter of the 27-nation bloc's imports of nitrogen-based fertilisers come from Russia, with more entering from Moscow's ally Belarus, which the European Commission now seeks to bring to an end.
Seeking to allay farmers' worries, Brussels says it will impose the duties from July and gradually increase them up to 2028 until they reach a level that would fully cut off the flow.
Three years after Russia's invasion of Ukraine, the EU must stop fuelling 'the Russian war machine' and 'limit the dependency of Europe's farmers to Russian fertilisers', said lawmaker Inese Vaidere, spearheading the push in the EU parliament to impose the tariffs.
Barring any last-minute drama, the European parliament is expected to approve the tariffs – although some right-wing lawmakers had been calling for a one-year suspension.
The move is not welcomed by farmers.
With rising production costs, pan-European farmers' group Copa-Cogeca explained, using Russian fertilisers was 'the most competitive in terms of price, due to well-established logistics' for supplying the EU.
Brussels also intends for the levies to prevent the indirect export of Russian gas, which is used to produce fertilisers.
The EU also wants to increase the bloc's own fertiliser production, and its moves are welcomed by the fertiliser industry in the bloc.
'Time is running out. We've been basically calling for action at the EU level for three years,' said Tiffanie Stephani of Norwegian fertiliser manufacturer Yara.
However, she admitted the farmers' concerns were 'more than legitimate'.
'Punishing farmers'
The EU has its work cut out to reassure farmers, who are already angry about administrative burdens, squeezed revenues and what they see as unfair competition from less-regulated overseas rivals.
The tariff could be 'potentially devastating' for the agriculture sector, warned Copa-Cogeca, adding: 'European farmers must not become collateral damage'.
A farmer in central Belgium, Amaury Poncelet, accused the EU of hurting the sector.
After spreading nitrogen fertiliser on his field in Berloz – which he buys from a dealer in Ghent without knowing where it comes from – the grain and beet farmer said he 'doesn't understand the EU's idea of punishing its farmers'.
'We're losing money because of these European decisions that treat us like pawns who don't matter,' he said.
The EU has suggested that duties on imports from North Africa, Central Asia, the US, Trinidad and Tobago, and Nigeria could be removed to alleviate pressure on prices, among other mitigating measures, should the duties lead to price shocks.
Yara's Stephani pointed to estimates showing that, with tariffs on Russian imports, there would be an increase of fertiliser prices of five to 10 dollars per tonne 'because of different logistic costs'.
Prices vary, but a tonne of nitrogen fertiliser is currently worth around US$400.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysian Reserve
2 hours ago
- Malaysian Reserve
Johan: Government to closely monitor potential impact from ongoing geopolitical tension
KUALA LUMPUR — The government is closely monitoring the ongoing geopolitical situation and its potential impact on the Malaysian economy, particularly in the wake of the Sales and Service Tax (SST) expansion. Treasury Secretary-General Datuk Johan Mahmood Merican said the high level of uncertainty due to geopolitical developments in the Middle East draws a premature conclusion on how it might influence inflation and the cost of living domestically. 'I do recall back when we had the Ukraine war, there was just so much uncertainty. We don't know to what extent the situation may escalate and how that might impact the economy. 'Initially, we had thought that the Russia-Ukraine war would not affect us much because we do not have much trade with either country. We were quite wrong. It turned out that Ukraine was the major supplier of feed. Therefore, we suddenly saw an increase in agricultural inputs, which impacted prices,' he said at the Concorde Club session today. Johan said given the ongoing conflict is in the Middle East, there will be some impact on oil prices, one of the key factors in Malaysia's inflation outlook. He said oil prices have been fluctuating significantly, having started the year in the mid-US$70 range, dipped to the low US$60 last month and recently climbed again amid regional instability. 'But at least, year-to-date, inflation has remained below 2.0 per cent thus far. We saw a Maybank estimate of an impact of 0.25 per cent on the consumer price index (CPI) as a result of SST. 'Our internal estimates are in that order of magnitude as well. But if the situation escalates, we certainly need to see how that impacts in terms of economic growth,' he said. For now, Johan said the ministry will continue to monitor developments and adjust its economic strategies as needed to maintain price stability and protect Malaysians from sudden cost-of-living pressures. The expanded SST to improve national fiscal stability without overburdening the public is set to take effect from July 1, 2025. The government expects additional SST to increase by RM5 billion in 2025 and by RM10 billion in 2026 following the review and expansion of the tax scope. On RON95, Johan said the government remains committed to rationalising fuel subsidies through a targeted approach, with the implementation of RON95 petrol subsidy reforms anticipated in the second half of 2025. 'The exact timing and structure are still subject to Cabinet decision,' he said. He said the move mirrors earlier reforms undertaken for electricity tariffs and diesel subsidies, which introduced tiered pricing mechanisms to protect lower and middle-income groups while curbing leakages. — BERNAMA
Malay Mail
5 hours ago
- Malay Mail
France's Macron urges diplomacy, warns of ‘uncontrolled escalation' after US strikes on Iran
PARIS, June 23 — French President Emmanuel Macron on Sunday warned against an 'uncontrolled escalation' in the Middle East after the United States joined Israel's campaign against Tehran's atomic programme by bombing Iranian nuclear sites. 'No strictly military response can produce the desired effects,' Macron told a defence council meeting in Paris. 'The resumption of diplomatic and technical discussions is the only way to achieve the goal we all seek, which is to prevent Iran from acquiring nuclear weapons,' he added. The French leader however did not directly condemn the unprecedented US intervention. After a scheduled visit to Norway on Monday, Macron is on Tuesday due to go the Netherlands for a Nato summit which US President Donald Trump is also set to attend. In a joint statement with his German and British counterparts, Macron called on Iran 'not to take any further action that could destabilise the region' in response to the strikes. Earlier the French leader had urged Tehran to de-escalate and 'exercise the utmost restraint' after the strikes in a call with his Iranian counterpart Masoud Pezeshkian. He said he also told Iran to 'renounce nuclear weapons', warning of 'the risk of the worst for the entire region'. On Sunday, Macron also spoke with the leaders of Saudi Arabia, Oman, the United Arab Emirates and Qatar. — AFP
Free Malaysia Today
6 hours ago
- Free Malaysia Today
How AI is becoming a secret weapon for workers
Companies should completely rethink their integration of AI, rather than turning a blind eye to those employees that use the technology covertly. (Envato Elements pic) PARIS : Artificial intelligence is fast becoming part of everyday working life, promising productivity gains and a transformation of working methods. Between enthusiasm and caution, companies are trying to harness this tech and integrate it into their processes. But behind the official rhetoric, a very different reality is emerging: many employees are adopting these tools discreetly, out of sight of their managers. A recent survey conducted by software company Ivanti shows the extent of this under-the-radar adoption of AI, revealing one-third of employees surveyed use AI tools without their supervisors' knowledge. There are several distinct reasons for this covert strategy. For 36% of them, it is primarily a matter of gaining a 'secret advantage' over their colleagues, while 30% of respondents fear that revealing their dependence on this technology could cost them their jobs. This is understandable, considering that 29% of employees are concerned that AI will diminish the value of their skills in the eyes of their employer. The figures reveal an explosion in clandestine use: 42% of office workers say they use generative AI tools such as ChatGPT at work. Among IT professionals, this proportion reaches an impressive 74%. And close to half of office workers use AI tools not provided by their company. Underestimating the risks This covert use exposes organisations to considerable risks: unauthorised platforms do not always comply with security standards or corporate data-protection requirements. From confidential data and business strategies to intellectual property, anything and everything can potentially be fed into AI tools unchecked. 'It is crucial for employers to assume this is happening, regardless of any restrictions, and to assess the use of AI to ensure it complies with their security and governance standards,' stressed Brooke Johnson, chief legal counsel at Ivanti. Employers should encourage open dialogue to foster transparency and collaboration, ensuring that the benefits of AI are harnessed safely and effectively. (Envato Elements pic) The survey also reveals a troubling paradox: while 52% of office workers believe that working more efficiently simply means doing more work, many prefer to keep their productivity gains to themselves. This mistrust is accompanied by an AI-fuelled impostor syndrome, with 27% of users saying they don't want their abilities to be questioned. This situation highlights a huge gap between management and employees: although 44% of professionals surveyed say their company has invested in AI, they simultaneously complain about a lack of training and skills to use these technologies effectively. This disconnect betrays a poorly orchestrated technological transformation. In the face of this silent revolution, Johnson advocates a proactive approach: 'Organisations should implement clear policies and guidelines for the use of AI tools, along with regular training sessions to educate employees on the potential security and ethical implications.' This survey suggests that companies should completely rethink their integration of AI, rather than turning a blind eye to this legion of secret users. The stakes go beyond mere operational optimisation: the most successful organisations will need to balance technological use with the enhancement of human potential. By encouraging open dialogue, employers can foster transparency and collaboration, ensuring that the benefits of AI are harnessed safely and effectively. Ignoring this silent revolution runs the risk of deepening mutual distrust between management and employees, to everyone's detriment.
