As Russia shifts its revenue strategy from gas exports to fertilizers, the European Union must take decisive action to mitigate this new economic threat. The sales of Russian fertilizers have become a major source of revenue, generating over €1.5 billion in 2022-2023. This income, along with additional export and excess profit taxes, directly funds Russia’s military activities in Ukraine. Despite the EU’s efforts to reduce dependency on Russian gas since the invasion of Ukraine in 2022, imports of Russian urea have increased, undermining the EU’s own fertilizer industry.
Russian gas price regulations allow its fertilizer producers to undercut EU prices, making EU farmers increasingly dependent on cheaper Russian imports. This dependency has led to 20% of EU fertilizer production capacity lying idle due to a lack of demand. The EU must counter this economic manipulation by imposing tariffs on Russian fertilizers, similar to recent measures on grain imports. These tariffs would not only reduce Russia’s war funding but also protect the EU’s domestic fertilizer industry and contribute to the EU’s climate goals by preventing reliance on Russia’s higher-emission fertilizers.
Moreover, the EU’s fertilizer industry has sufficient capacity to meet internal demand if imports from Russia were blocked, ensuring that farmers would not suffer from shortages. Additionally, stopping imports of Russian fertilizers would enable the EU to continue its green transformation efforts, crucial for achieving climate neutrality by 2050. Swift and robust policy action is needed to protect EU farmers, stabilize the fertilizer market, and support Ukraine’s struggle against Russian aggression.
