Oil Production in Ukraine to Decline Due to Closed Ports

This opinion was expressed by Stepan Kapshuk, Director General of the Ukroliyaprom Association, in a comment to RBC-Ukraine.

According to his estimates, sunflower oil exports could decline to 300 thousand tonnes from the usual 500 thousand tonnes, while exports of rapeseed and soybean oil will amount to around 50–60 thousand tonnes.

«It is impossible to actively purchase raw materials when there is no certainty that the finished products can be exported. This situation is holding back the market. At present, it cannot be said that prices have already started to decline,» Stepan Kapshuk said.

It is noted that purchase prices for sunflower seeds have currently fallen to UAH 18–20 thousand per tonne.

Ukroliyaprom is asking the government to give priority to oil exports. One rail wagon of oil generates seven times more foreign exchange earnings than a wagon of grain. In addition, the processing season is running two to three weeks behind schedule due to weather conditions.