The WTO approved the creation of an arbitration panel on Russia's dispute with the EU over carbon fees

The World Trade Organization (WTO) has granted Russia's request to create a group to resolve the dispute over the EU border adjustment mechanism, which provides, among other things, for a carbon levy on the import of a number of products, Nikolai Platonov, the permanent representative of the Russian Federation to the WTO, told RIA Novosti.

In mid-July, Russia asked the WTO to establish an arbitration panel to resolve a dispute over the EU's border carbon adjustment mechanism. As stated by the Ministry of Economic Development of Russia, in the opinion of the Russian Federation, the mechanism is used to limit access to the market for competitive imported products.

“Today, at the regular meeting of the WTO Dispute Settlement Body, a repeated request from the Russian side to establish an arbitration panel was approved to review the merits of the EU Border Carbon Adjustment Mechanism for its compliance with WTO standards,” the permanent representative said.

He noted that the previous appeal for approval of the arbitration group was blocked by the EU delegation. At a meeting on Friday, the WTO Dispute Settlement Body approved the creation of such a group.

“This time, the EU members procedurally did not have such an opportunity, as a result of which the dispute will now be dealt with by arbitrators,” Platonov said.

The EU Carbon border adjustment mechanism involves the purchase of certificates by importers of products, the production of which within the EU itself would be associated with significant greenhouse gas emissions.