(Bloomberg) — PhosAgro PJSC, Russia’s biggest producer of phosphate fertilizer, is calling for the government to help mitigate potentially billions in losses for the country’s raw-materials producers if Europe introduces a carbon tax.
The European Union is looking at how a potential carbon tax could help meet its 2050 goal of climate neutrality. If imposed, the levy would hit imports, including raw materials and products produced in countries without duties on emissions, such as Russia. The European Commission, the bloc’s executive arm, will next propose a draft regulation on the levy in June 2021.
A European carbon tax could potentially cost Russian companies between $1.8 billion to $8 billion every year “depending on the scope of the processes and products to which the tax may be applied,” Andrey Guryev, PhosAgro’s chief executive officer, said in an interview in Moscow.
“Europe is a big export market for all of us,” Guryev said.
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While the precise rules of a Europe-wide carbon tax haven’t been worked out yet, EC President Ursula von der Leyen warned in January that fossil fuel producers must pay a levy on pollution at home or risk being hit with a planned greenhouse gas duty on products imported into the EU.
Guryev said the Russian government could help companies mitigate carbon-tax costs by re-examining the