The U.K. government on March 15 announced fresh sanctions against Russia following its invasion of Ukraine on Feb. 24. Among the new measures, Russian imports of potash and phosphates will face an additional tariff increase of 35 percentage points over and above any existing tariff rate, as the U.K. withdraws Russia’s access to most-favored-nation tariffs.
As far as the U.K’s phosphates imports are concerned, DAP supplies will be the most impacted. Russia was the source for 38 percent of the country’s DAP imports last year. The U.K. imported 127,323 mt of DAP in 2021, according to Trade Data Monitor.
Regarding imports of Russian potash, the U.K. imports relatively little potash from Russia. In 2021, the country imported 5,801 mt of potash from Russia, according to Trade Data Monitor. Total potash imports into the U.K. last year were 357,484 mt, down 16.5 percent from 428,225 mt in 2020.
Phosphates and potash are among a raft of Russian import products selected to be subject to the additional tariff increase. According to a U.K. government statement, the products have been selected “to inflict maximum damage on the Russian economy while minimising the impact on the U.K.”
The U.K. government said it will deny Russia – as well as Belarus – access to most-favored-nation tariffs for hundreds of their exports, depriving both countries key benefits of WTO membership.
Russian vodka is one of the iconic products affected by the tariff increases. Other Russian products on what the U.K. government described as “the initial list of import goods worth £900 million” (approximately $1.2 billion at current exchange rates) that will now face the additional 35 percent tariff, on top of the current tariff, are iron and iron ore, steel, wood, tires, cement, copper, aluminum, silver, lead, cereals, oil seeds, ships, white fish, and fur skins and artificial fur, among a raft of others.
Alongside its G7 allies, the U.K. government on March 15 also announced a ban on exports to Russia of high-end luxury goods, and said further details on the export ban will follow in due course. Earlier U.K. sanctions-related export bans to Russia have included items such as high-end fashion, works of art, and luxury vehicles.
The U.K. already has banned Russian ships from its ports. U.K. Transport Secretary Grant Shapps on March 1 instructed all U.K. ports as of that day to deny access “to any vessel that is flagged, registered, owned, or operated by – or connected to – Russia.” (GM March 4, p. 28).