Lavrov: Russia asks EU to clarify ‘carbon tax’, awaits response

Russia is waiting for an explanation from the European Union regarding the principles of forming customs duties to eliminate carbon emissions, Russia's Minister of Foreign Affairs Sergey Lavrov said on Monday.

"We asked the EU to explain themselves. We are waiting for a reaction," he said.

The minister stressed that the "carbon tax" directly contradicts the WTO rules.

Earlier, the European Commission proposed an extensive action plan to completely eliminate carbon emissions in the EU by 2050, which will require a complete restructuring of the EU economy. In particular, the EC came up with a proposal to introduce customs duties on imports of iron and steel (including pipes and rails), as well as aluminum, cement, fertilizers, and electricity to the EU. According to the EC plan, there will be a transition period from 2023 to 2025, when importers will have to report quarterly on the actual emissions associated with goods imported into the EU and any payments for carbon emissions abroad. Companies will start paying customs duties only from 2026.

At the same time, payments of Russian exporters on the EU carbon tax may amount to $6.4 bln by 2030, and in 2026 will be at the level of $1.8-3.4 bln, according to a study by consulting company BCG.