Hungary is urging the European Union to suspend tariffs and additional duties on fertilizer imports from Russia and Belarus, citing rising price pressure linked to the war in Iran.
In a letter to European commissioners, Agriculture Minister István Nagy said higher fertilizer prices and supply uncertainty are affecting EU farmers and may contribute to higher food prices. He called for a temporary reduction of levies on Russian and Belarusian fertilizers to zero.
Hungary relies on imports for key inputs, as domestic production is limited to nitrogen fertilizers, while phosphorus and potash are sourced from abroad. The government warned that restricted access to lower-cost imports could affect crop yields.
The EU increased duties on fertilizer imports from Russia and Belarus in 2025 after import volumes rose following the start of the war in Ukraine. Concerns were raised that Russia was redirecting gas exports into fertilizer production to maintain export revenues.
Russian fertilizer shipments to the EU were valued at around €2 billion (US$2.18 billion) last year. Volumes declined in early 2026 as the impact of higher duties became visible.
At the same time, disruptions linked to Iran, including the blockage of the Strait of Hormuz, are affecting fertilizer markets by increasing costs for both fuel and raw materials used in production.
Hungary has also called for the EU to review restrictions on Russian gas imports to reduce input costs. This proposal has been rejected by the European Commission.
Market participants indicate that fertilizer price developments and supply availability will remain a factor in production planning across the EU.
Source: Politico
