Russia is considering its own Carbon Tax while the EU is Preparing One

Russia is considering developing its own carbon tax as the European Union draughts one to avoid cross-border costs for Russian businesses.

From 2026, the European Commission intends to impose a CO2 tariff on polluting commodities, forcing some importers to pay carbon charges at the border on carbon-intensive materials like steel.

The tax could affect $7.6 billion in Russian goods, including iron ore, aluminum, pipelines, electricity, and cement, according to Moscow, and it might eventually be expanded to include oil, gas, and coal exports.

Because neither the government nor business appears to be interested in the EU collecting payments from Russian exporters at its discretion, the key logic is to get ahead of the EU in developing national regulation, to make it easier for business, and to have Russian offset measures that are comparable to those in Europe.

The mechanism’s development is projected to take 12-18 months, and the government plans to start the process immediately by forming working groups with corporate leaders.