Disruptions to Sunflower Oil Exports from Russia and Ukraine Persist

Moscow. A fierce war continues between Russia and Ukraine—the world’s leading producers and exporters of sunflower seeds, sunflower oil, and oil meal. The movement of cargo vessels through the maritime routes connected to each other’s ports has come to a near-complete standstill. Russia has now begun systematically targeting Ukraine’s sunflower-related infrastructure, creating immense difficulties for the country in producing and exporting sunflower oil.

The heavy attacks on Ukraine’s sunflower storage facilities, oil mills, and other infrastructure have begun to impact the global supply and availability of sunflower oil. With exports from Ukraine severely hampered, prices for sunflower seeds and oil have started to climb in other producing and exporting nations, such as Russia, Romania, and Argentina. Within Ukraine itself, prices have surged due to the significantly heightened risks associated with exports. The ongoing attacks on warehouses and crushing plants have accelerated the destruction of these facilities, while simultaneously, global demand for Russian sunflower oil continues to rise.

At Ukraine’s Odesa port, the 'Free on Board' (FOB) export offer prices for crude sunflower oil have seen a sharp increase over the past few days. Importers have become cautious, while exporters continue to face significant risks. The port of Odesa has been a primary target for Russia since the beginning of the conflict. Shipping companies are reluctant to send vessels there, and insurance premiums for such shipments have soared. Consequently, major importing nations like India are facing significant challenges and difficulties in sourcing sunflower oil from the region.