Published by Global Banking & Finance Review®
Posted on August 22, 2025
5 min readLast updated: January 22, 2026
Add as preferred source on GoogleEU tariffs on Russian fertiliser imports are raising costs for European farmers, affecting agriculture and consumer prices.
By Alexander Marrow
LONDON (Reuters) -EU tariffs on Russian fertiliser imports that aim to cut funding for Moscow's war in Ukraine have so far hit European farmers, raising costs and risking higher consumer prices while Russian companies say they can divert exports to other markets.
"We're shooting ourselves in the foot," farmer Cedric Benoist, deputy secretary general of French wheat farmers union AGPB and head of the cereals committee of EU farmer association Copa Cogeca, told Reuters, saying farmers are now faced with paying higher global prices.
Global fertiliser prices have been rising this year, World Bank data shows, in part due to the additional levies introduced on July 1 on top of import tariffs, adding to other challenges facing European farmers such high energy costs and environmental regulations.
Western countries did not impose sanctions on food or fertiliser exports over Moscow's February 2022 invasion of Ukraine. But fertiliser export tariffs are now being imposed gradually over three years by Europe as it looks to further reduce dependence on Russian supplies.
Russia produces more than 20% of the world's fertiliser and supplies around 25% of the EU's fertiliser imports.
The EU said it will be monitoring the impact of tariffs closely to ensure that the EU's fertiliser industry and farmers are protected.
Tariffs kicked off at 40 euros per metric ton for urea and nitrogen in July and are set to reach 315 euros per ton from July 2028. Average prices for urea, a nitrogen-based fertiliser, rose 26.5% to $496 per metric ton from May to July, World Bank data showed.
The EU does not yet have data to evaluate the impact of its tariffs, but an official said the tariffs can be postponed if the result is that prices rise too high.
"Due to...hesitancy around Russian purchases, European suppliers are pricing their products higher than in other regions," independent fertiliser market analyst Swati Kushwaha told Reuters, referring to prices of fertiliser products. "Consequently, buyers are turning to more expensive sources, like Canada."
Farmers are concerned, particularly as wheat prices have hit five-year lows.
Benoist said lots of farmers were holding off buying, hoping fertiliser prices would fall.
"It can't last at this price, given the price of wheat," Benoist said. "But right now, in terms of profitability for farmers, it's completely unsustainable."
Rising prices for fertilisers such as diammonium phosphate (DAP) and urea contributed to soaring consumer prices after Russia's invasion of Ukraine. Prices eased in early 2023, but are once again rising.
Average annual DAP prices, down to $550 per metric ton in 2023 from $772.2 per metric ton in 2022, according to World Bank data, were back up to $736 per metric ton in July on average, rising 10% since May when the tariffs won parliamentary backing.
Farmers across Europe protested throughout 2024 against excessive regulation, free-trade deals and efforts to bring down food inflation that left many producers unable to cover high costs for energy, fertiliser and transport.
GLOBAL SUPPLY SHIFTS
Dmitry Tatyanin, CEO of Russia's Uralchem, told the RIA news agency in June that the fertiliser producer would redirect European exports to other markets if necessary.
Reuters could not determine whether Russian producers had started diverting supplies. Major producers Acron, PhosAgro and EuroChem did not respond to requests for comment.
Russian producers are major suppliers of potash, urea and phosphate to markets such as Brazil, India and the United States, a report from Canadian fertiliser producer Nutrien showed.
Billionaire Dmitry Mazepin, who resigned as CEO of Uralchem and reduced his stake to 48% from 100% after being added to an EU sanctions list in March 2022, said sanctions on Russia had created problems and raised prices.
African, Indian, and Chinese farmers ultimately buy fertiliser at higher prices because Russian fertilisers have longer distances to travel, Mazepin told Reuters.
"In the end, European farmers will pay extra for these tariffs," Mazepin said.
Uralchem, which declined to comment, is not under sanctions and Mazepin no longer has any operational involvement.
General sanctions on Russia have made it harder for traders to process Russian payments or to obtain vessels and insurance.
However, Norwegian fertiliser producer Yara International said Russian fertiliser imports to Europe significantly increased since Moscow's 2022 invasion, with urea imports 48% higher in the 2023-24 season, compared to the average of five seasons before the war.
EU countries sharply increased imports of Russian fertilisers in anticipation of the import duties, Yara added.
"We fully understand that tariffs can cause concern amongst European farmers, but the tariff measures have been designed by EU policymakers with farmers' long-term stability and resilience in mind," Yara said, adding that the tariffs were important in levelling the playing field for European fertiliser producers.
Antoine Hoxha, director general of industry lobby Fertilizers Europe, said it was too early to assess the tariffs' impact, but said EU countries have ample stocks and that tariffs would ultimately benefit Europe's strategic autonomy.
Reuters could not determine how long those stocks would last before any potential pressure on consumer prices begins to filter through.
(Reporting by Alexander Marrow in London, Gus Trompiz in Paris and Tristan Veyet in Gdansk; Editing by Elaine Hardcastle)
EU tariffs are taxes imposed on imported goods to regulate trade and protect local industries. In this case, they are applied to Russian fertiliser imports.
Fertiliser is a substance added to soil or plants to provide essential nutrients for growth. It can be organic or synthetic.
Rising fertiliser prices can increase production costs for farmers, potentially leading to higher consumer prices for agricultural products.
The World Bank provides financial and technical assistance to developing countries for agricultural projects, aiming to reduce poverty and improve food security.
Global supply chains are networks that facilitate the production and distribution of goods across countries, impacting pricing and availability of products.
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