Russia says carbon tax at EU borders could infringe on global trade rules

MOSCOW, June 17 (Reuters) – Russian Deputy Prime Minister Alexander Novak said on Thursday that the European Union’s plans to impose carbon emission costs on imported goods could conflict with the rules of the global trade and threaten the security of energy supplies.

The EU plans to impose carbon emission costs on imports of goods, including steel, cement and electricity, according to a draft document seen by Reuters. The European Commission has stated that such a measure would be fully in line with World Trade Organization rules.

Novak, the former Russian energy minister, told the ministry’s in-house magazine that these border carbon taxes could be extended in the coming years to include oil, natural gas and coal, the main sources of income for local people. Moscow state coffers.

“Many experts believe that the introduction of (the carbon border tax) may violate several principles of the World Trade Organization,” Novak said.

He also called for a search for a compromise and warned of possible interruptions in the energy supply.

“Artificial restrictive measures of the traditional fuel and energy sectors can reduce the profitability and attractiveness of investments in the sector, and as a result, the threat to the security of energy supplies will emerge,” Novak said.

Report by Vladimir Soldatkine. Editing by Jane Merriman

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