Brussels is significantly increasing import duties on fertilizers from Russia and Belarus as of July 1. The duties will gradually increase to 100% of the value in 2028. With this step, the European Union wants to reduce its dependence on these countries and prevent Russia's war efforts against Ukraine from being financed via fertilizer exports.
The increased import duties on Russian fertilizers, decided by the European Parliament on 22 May, will make cheaper fertilizers less available in Europe. At the same time, the measure is intended to stimulate European fertilizer production and thus reduce dependence on Russia. In the short term, this will probably lead to higher production costs, especially if there are no good alternatives. In addition, the measure will create more uncertainty and price volatility, which will make it even more difficult to buy fertilizers at the right time.
Poland, France and Germany are the largest buyers of Russian fertilizers within the EU. Total fertilizer imports from the country amounted to 2022 million tons in 5,3. In 2023, this decreased to 3,9 million tons, but in 2024, imports increased again to 4,9 million tons.
Consequences for European agriculture
The increase in import duties is intended to reduce the inflow of nitrogen fertilizers from Russia and Belarus. The European Commission and the member states have already approved the higher duties, which will come into effect from 1 July 2025. MEP Inese Vaidere (Latvia) stressed: "This measure must prevent Russia from financing its war via the European market."
However, the increase in levies also has consequences for the European agricultural sector. The European farmers' organisation Copa-Cogeca warns that farmers should not become unintended victims of this measure, as higher costs for fertilisers could affect agricultural production. The European Commission has indicated that it will actively monitor fertiliser prices and, if necessary, take additional measures to mitigate the impact on farmers.
Although CAN (calcium ammonium nitrate) is produced in several places in the world, Russia is still an important exporter of nitrogen fertilizers to the EU. Rumors from the market indicate that CAN is currently offered for around €35 per 100 kilos when delivered in big bags, while the price for loose CAN is around €33,50 per 100 kilos. Triple superphosphate (TSP), a widely used phosphate fertilizer in the Netherlands, is traditionally imported mainly from countries such as Morocco, Egypt and Tunisia. In recent years, however, Russian phosphate fertilizer has gained considerable ground. The main reason for this is the price. The market indicates that triple superphosphate is currently available for €60 per 100 kilos. Russian TSP is often considerably cheaper than that of other suppliers, thanks to lower production costs and government support for the fertilizer sector. An important reason why many European importers still opt for Russian TSP.
Take higher costs into account
Insiders say that the import duties on Russian fertilizers from July 1 will indeed have an impact on pricing within the European fertilizer market. If, despite the duties, fertilizers from Russia still reach the European market, farmers will have to take into account higher costs for fertilizers.