It is not possible to replace Russian and Belarusian mineral fertilizer supplies with imports from other countries in the short term - owner of WO Trading

RIGA - It is not possible in the short term to fully replace Russian and Belarusian mineral fertilizer supplies with shipments from other countries while maintaining current price levels, Toms Egle, owner of SIA WO Trading, told LETA.

WO Trading has challenged before the Court of Justice of the European Union (CJEU) the changes to customs duties imposed by the European Union (EU) on goods originating in or exported from Russia and Belarus.

When asked what the main arguments are for challenging the customs duty changes in court, Egle explained to LETA that the gradual increase in customs tariffs stipulated by the EU regulation poses an objective risk that the supply of mineral fertilizers essential to agriculture will decrease in the EU, leading to a corresponding increase in their prices.

Given the high concentration of the global fertilizer market, the reorientation of supplies could pose a risk of price increases not only in the EU but also in the broader global market, Egle said.

He emphasized that WO Trading does not object to the political objective of increasing customs tariffs and supports sanctions against Russia and Belarus, but objects to the proportionality of the chosen instrument and its potentially disproportionate impact on Latvia’s mineral fertilizer market and agricultural sector.

He explained that WO Trading's operations in Latvia’s regions are aimed at supplying Latvian farmers with mineral fertilizers.

Egle added that the EU regulation on changes to customs duties applicable to certain imported goods originating in or exported from Russia and Belarus was adopted on June 17, 2025, and establishes gradually increasing customs tariffs through 2028.

Egle emphasized that the mineral fertilizer market is global, yet at the same time highly concentrated. As an example, he noted that the potash fertilizer market is the most concentrated, with three leading countries: Russia, Belarus, and Canada. Russia is also the world's leading producer of nitrogen and phosphate fertilizers.

WO Trading believes there is a reasonable and objective risk that alternative mineral fertilizer supplies to the EU will be priced higher than before the tariff increase under the regulation, namely, that prices will adjust to reflect the increased cost of mineral fertilizers originating in Russia and Belarus on the EU market.

WO Trading wishes to ensure that Latvian agricultural producers are not forced to reduce the amount of fertilizer they use, thereby jeopardizing crop yields. The rising cost of mineral fertilizers increases agricultural production costs and raises the final price of products paid by consumers, Egle emphasized.

There is also a risk that, as customs tariffs rise, there will be a greater incentive to route mineral fertilizers from Russia and Belarus through third countries, repackage them, or otherwise conceal their actual origin. This, in turn, could complicate oversight and reduce the effectiveness of regulations, explained the owner of WO Trading.