The European Union is set to implement substantial tariffs of close to 50 per cent on imports of Russian wheat in a bid to stop Russia trying to destabilise the EU by flooding its western neighbours with cheap wheat.
Russia has enjoyed a big production year and has also bolstered its wheat reserves by taking grain in parts of Ukraine it occupies.
This has led to it being the dominant player in world wheat export markets in recent months, with global prices falling in line with its aggressive selling program.
Russian grain attracts low or no customs duties when sold in the EU but the proposal would lead to the imposition of a tariff of (e)90-95 ($A148-155) per tonne of grain, which currently sells for up to (e)220/t ($A364/t).
The European Commission, the EU's bureaucratic arm, also said it hoped the imposition of tariffs would help undermine Russia's efforts in its war against Ukraine.
The measures will also apply to Russia's close ally Belarus.
The decision from the EC makes a clear change of policy for the EU, which thus far during the conflict has explicitly avoided imposing sanctions of Russian agricultural produce.
Industry analysts are unsure how much impact the EU decision will have on world markets, given Russian sales to the EU are relatively low, with far more grain heading west from Ukraine.
However, given Russia's big surplus of wheat to export this year that figure could rise higher than usual.
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
