On 19 May, Russia formally requested consultations with the EU under WTO rules, and filed a complaint at the WTO against the EU’s Carbon Border Adjustment Mechanism (CBAM). According to Russia’s Economic Development Ministry, the EU is using environmental goals as a pretext to introduce protectionist trade policies, and the complaint seeks to establish clear boundaries on what is acceptable under international trade rules. The complaint argues that the schemes amount to a protectionist and discriminatory trade barrier masquerading as climate policy. Russian industries that would be affected by the CBAM include steel, aluminum, fertilizers, and cement. The EU has signalled that it does not wish to engage with Russia, given the war in Ukraine. If no resolution is reached within 60 days, Russia can escalate the case to a WTO panel.
