EU restrictions on Russian fertilizer threaten to drive up global edible oil prices

Europe is making it significantly harder and more expensive to import fertilizer from Russia, through a combination of new carbon levies, escalating tariffs, and fresh sanctions. Farm groups say fertilizer imports have already collapsed by more than 80%, and warn of a repeat of the 2022 price shock — when fertilizer costs surged globally, and food prices followed. For the food ingredients sector, one of the most exposed downstream markets is palm oil. Since January 1, the EU’s Carbon Border Adjustment Mechanism (CBAM) — a carbon levy on imports of emissions-heavy products — has applied to fertilizers entering the bloc. At the same time, tariffs on Russian and Belarusian fertilizer that took effect in July 2025 are set to rise sharply.

​Europe is making it significantly harder and more expensive to import fertilizer from Russia, through a combination of new carbon levies, escalating tariffs, and fresh sanctions. Farm groups say fertilizer imports have already collapsed by more than 80%, and warn of a repeat of the 2022 price shock — when fertilizer costs surged globally, and food prices followed. For the food ingredients sector, one of the most exposed downstream markets is palm oil. Since January 1, the EU’s Carbon Border Adjustment Mechanism (CBAM) — a carbon levy on imports of emissions-heavy products — has applied to fertilizers entering the bloc. At the same time, tariffs on Russian and Belarusian fertilizer that took effect in July 2025 are set to rise sharply.    Read More