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Kernel Holding, the preeminent producer and exporter of sunflower oil in Ukraine, announced on November 12 that it has suspended operations across all eight of its oil extraction facilities. The decision follows a series of concentrated Russian strikes that have severely impacted the country's food processing infrastructure.
The company’s announcement comes shortly after Ukrainian military intelligence (HUR) warned that Russia is systematically targeting food industry facilities. These tactical strikes aim to destabilize global food security, cause significant economic disruption, and leverage a larger share of the international agricultural export market for Russia.
In a formal press release, Kernel stated: 'Due to massive Russian strikes on food industry facilities, Kernel has suspended operations at all of its oil extraction plants.' The company noted that Russian drones have deliberately targeted Ukrainian processing assets over several days, resulting in damage to production buildings, specialized equipment, and storage infrastructure.
The suspension is primarily driven by safety concerns. Kernel explained that the sunflower oil extraction process carries a high risk of fire, meaning drone strikes could trigger catastrophic blazes that would endanger the workforce. The company confirmed that all employees are safe and that the suspension is a preventative measure to ensure their ongoing protection.
As part of the shutdown, Kernel has also halted all purchases of sunflower seeds. However, the firm emphasized that it 'maintains full operational and financial stability' despite the recent impact. It continues to fulfill existing contracts with Ukrainian farmers and is proceeding with the shipment of current inventory from its warehouses.
Historically, Kernel Holding has been a global powerhouse in the vegetable oil sector, accounting for approximately 9% of the world’s sunflower oil production before the full-scale invasion. With an annual processing capacity of 3.5 million metric tons, it remains a critical player in global supply chains.
The halt coincides with an escalation in aerial warfare. On the night preceding the announcement, Ukrainian forces reported a massive barrage involving ballistic and anti-ship missiles along with 123 long-range attack drones. While energy and transport sectors remain primary targets, military intelligence sources indicate that vegetable oil plants, grain storage, dairy, and meat processing facilities are now explicitly listed in Russia’s strategic targeting plans.
Source: The Kyiv Independent