EU Blocks Russia Request for WTO Panel on Carbon Tax

[ABS News Service/27.07.2026]

Separately, the European Union blocked Russia’s first request for establishment of a dispute panel on the EU carbon border tax. Russia argued that the Carbon Border Adjustment Mechanism violates WTO rules and is highly restrictive and discriminatory, aimed at shielding EU domestic industries and distorting competition.

Moscow noted that the EU declined its request for consultations and that, as a result, it has no choice but to move forward with proceedings. Brussels said it refused the consultation request in light of Russia's war of aggression against Ukraine, which it considers a blatant violation of international law, said people familiar with the proceedings.

The EU stated that as long as Russia wages this war, it cannot expect to rely on WTO rules for improved access to the EU market.

In the same vein, the EU assured other WTO members that its CBAM is non-discriminatory, objecting to Russia’s panel request.

In a rebuttal, Russia said this issue does not concern the DSB and that political disagreements should not prevent the functioning of the WTO.