Moscow quietly imposes ‘shadow’ tariffs on Western goods reexported via EEU

Russia has begun imposing large tariffs on goods imported from member states of the Eurasian Economic Union but originally produced in Western countries, according to an article published Tuesday by Forbes Russia.

The affected goods include food and cosmetic products, clothing, perfume, alcoholic beverages and soft drinks, among other categories, with additional tariffs ranging from 15% to 50%. Under the EEU’s legal framework, import duties are typically paid once upon entry into the union, after which goods receive EEU status and can move freely between member states without further taxation.

Experts told Forbes Russia that if the new approach is upheld in courts, prices for foreign consumer goods could rise by up to 30% in the country.

The changes, introduced without prior announcement, apply to products manufactured in countries Russia designates as “unfriendly,” including the United States, Canada, the United Kingdom, and all European Union member states, as well as Japan, Australia and South Korea. The tariffs specifically target consumer goods and do not apply to items Russia has continued to import through parallel channels following sanctions imposed after its invasion of Ukraine in 2022, such as computers, smartphones and machinery spare parts.

The new tariffs could have significant implications for Armenia, for which Russia remains the largest foreign trade partner. Earlier this month, Russia’s food safety watchdog head accused Armenia of reexporting foreign-produced goods to Russia in violation of EEU rules.

“For example, over three years Armenia has increased flower exports to Russia from 36 million to more than 100 million flowers. There were similar increases in other product categories,” he said. “We have also observed supplies of untraceable products such as butter, cheese and fish. Trout from Armenia’s mountain rivers cannot possibly look like Norwegian trout,” Sergey Dankvert said.

Armenia has been a member of the Russian-led EEU since 2015, which provides an integrated market for goods and labor across five post-Soviet states. In recent months, Moscow has repeatedly criticized Yerevan’s efforts to deepen ties with the European Union, arguing that closer integration with Brussels is incompatible with EEU membership.

Tensions came to a head earlier this month during a meeting in Moscow between Russian President Vladimir Putin and Prime Minister Nikol Pashinyan, when Putin said Armenia must choose between the two blocs.