Russia Seeks Grain Quotas and Tariffs from All Union Members

Despite the expected record wheat harvest in Russia in 2022, Russian regulators are attempting to maintain strict control over grain exports at the EEU level. This is reported by Kommersant.

According to the publication, fearing re-exports, Russia wants all member states to establish export quotas and customs duties on grain. It may also extend the EEU supply restrictions, which are still in effect until June 30. Kazakhstan, which is interested in developing foreign shipments, opposes this.

During the meeting of the Eurasian Economic Commission (EEC) on May 20, Russia insisted that all EEU members set quotas and tariffs for grain exports to third countries, sources told the media. According to these sources, the Russian Ministry of Agriculture considers this measure necessary to prevent the re-export of Russian grain through the EEU, circumventing restrictions.

Since June 2021, a floating duty has been in effect in Russia for grain, barley, and corn exports, amounting to 70% of the difference between the average value of price indicators and the base part.

This spring, against the backdrop of increased purchases of wheat from Kazakhstan in Siberia, Russia banned grain exports to EEU countries until June 30. This has caused dissatisfaction in Kazakhstan, which suspects Russia of discrimination and, in response, also imposed quotas on the export of wheat and flour.

According to sources from Kommersant, during the meeting in the EEC, the Russian side noted the inadequacy of the measures taken, since Kazakhstan does not have export quotas for barley and corn, nor is there an export customs duty. As a result, there has been a significant difference in internal prices between the two countries.

As far back as August 2021, EEU members planned to introduce a unified approach to limit the export of wheat, barley, corn, sunflower, and several other products. However, this idea was never realized. Today, a complete ban on wheat exports has been imposed by Belarus.

Armenia and Kyrgyzstan are preparing decisions regarding tariffs and quotas, a source from Kommersant reports. Kazakhstan opposes tariffs, as they could interfere with local agricultural producers' compliance with international obligations, the Kommersant interlocutor adds.