Russia's WTO case against EU over carbon border mechanism will limit similar measures in other countries - Economic Development Ministry
MOSCOW. May 20 (Interfax) - Russia's complaint within the World Trade Organization (WTO) against the European Union regarding the Carbon Border Adjustment Mechanism (CBAM) aims among other things to restrict the adoption of similar regulations in other countries, the Russian Economic Development Ministry's press service told Interfax when commenting on the purpose of the complaint against the EU amid existing sanctions.
"CBAM is a systemic issue. We observe how the EU under the guise of green objectives is essentially attempting to legitimize protectionist policies across various platforms, including the WTO. These are systemic actions that require an appropriate response. Other countries considering yielding to EU pressure by adopting similar regulations will receive clear boundaries on trade rules that must not be crossed," the ministry said.
"Industries potentially affected by CBAM include metallurgy (steel and aluminum), fertilizer producers and cement manufacturers," the ministry told Interfax. It declined to disclose the estimated damage. "We cannot reveal the amount in the context of the dispute," it said.
When asked about the feasibility of the complaint given the non-functioning WTO Appellate Body, the ministry said that "WTO panel rulings are closely monitored worldwide."
"The practices emerging from this organization are observed by national regulators across the globe, as well as by regional trade bodies. Despite the inactive Appellate Body, WTO members still believe in the dispute settlement system. Over the past year alone, more than 15 disputes have been initiated at the WTO. Clearly, the value and importance of the WTO dispute settlement system persists, even without a functioning appellate body. If the EU files an appeal 'into the void' after the dispute, it will only further confirm the protectionist nature of Brussels' actions," the ministry said.
Commenting on whether BRICS countries support Russia's WTO case against the EU over CBAM, the ministry said that "CBAM has faced significant criticism from various WTO members during discussions in WTO committees." "As a rule, apart from statements by EU delegates, you won't hear anything positive about CBAM. European green protectionism affects producers in many countries. We are confident this case will draw particular attention from most WTO members," the ministry said.
As reported, Russia submitted a request to the WTO for consultations with the EU regarding CBAM on Monday. Under WTO rules, a consultation request marks the first stage of formal dispute settlement proceedings. If the dispute is not resolved within 60 days of the consultation request, Russia may refer the matter to a WTO panel.
CBAM is an EU-developed mechanism requiring importers to pay a carbon tax equivalent to the greenhouse gas emissions fees paid by European producers of similar goods. Duties on carbon-intensive imports into the EU covering cement, iron and steel, aluminum, fertilizers, electricity and hydrogen will be implemented starting in 2026.