Latvia plans 300% tariff on Russian and Belarusian grain shipments

Following a coalition meeting, Prime Minister Andris Kulbergs (AS) told reporters that the government plans to impose a 300% tariff on Russian and Belarusian grain cargo and its processing. The government will also develop mechanisms to identify and sanction grain potentially stolen from occupied Ukrainian territories that may be mixed into Russian exports.

Authorities plan to enable inspection of transit cargo and cooperate with Ukrainian representatives and laboratories to determine grain origin. Kulbergs stressed that Latvia is seeking a unified Baltic position on the issue, saying he has already spoken with Estonia's prime minister and plans talks with Lithuania's government leader as well.

Coalition agreement

Ruling coalition parties agreed on measures to restrict the transit of Russian and Belarusian grain through Latvia while prioritizing the interests of local farmers. New Unity MP Arvils Aseradens backed the prime minister's proposals, arguing that Russian grain transit should not take place in Latvia at all and that grain originating from occupied territories must be specifically identified and separated.

National Alliance MP Arturs Butans said his party has prepared amendments to the Agriculture and Rural Development Law that would fully ban Russian grain transit through Latvian ports and infrastructure. He noted that the goal of raising tariffs should be to make transit economically unviable rather than to generate extra revenue. Economy Minister Viktors Valainis (Greens/Farmers Union) emphasized that decisions on grain must primarily protect Latvian farmers' access to port and transport infrastructure at the most advantageous export times.

Rising transit volumes

The measures follow reports that Russian grain exporters are shifting shipments from the Black and Azov seas to the Baltic Sea due to Ukrainian attacks on ships and port infrastructure. Last season, Russia shipped 90% of its grain exports through Black and Azov Sea ports, while only one million tonnes went through its Baltic Sea ports. This season, demand for shipments to Russia's Baltic ports has already reached five million tonnes, with a sharp increase expected in September, particularly through Baltic states' ports, mainly Latvia's. Ukrainian strikes have destroyed more than 80% of Russia's grain export capacity, with August wheat exports hitting their lowest level in 16 years.