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The REPowerEU Plan: European solidarity and energy security in face of Russia's invasion of Ukraine, including the recent cuts of gas supply to Poland and Bulgaria (debate)
With sanctions against Russia, little is said about an important issue – the form by which trade barriers against Russia are and will be imposed. Whether these are import bans (quotas, embargoes) or tariffs. In my opinion, it is more advantageous for EU Member States to introduce import duties instead of bans. This is why: with trade bans, the supply of imported goods is reduced and therefore the price of the goods in the importing country rises, while the money from this increased price remains in the exporting country. On the contrary, with tariffs, although the price of the goods in the importing country also rises, the money from the increased price will remain in the importing country. Moreover, unlike bans, tariffs can be adjusted gradually and flexibly, precisely according to the evolution of the situation. The revenue from tariffs can also more easily compensate countries that will suffer the most from the restrictions on imports from Russia.