Russian Strikes on Ukrainian Ports Hit Sunflower Oil Exports

A Ukrainian farmers' union has reported that vegetable oil exports have been directly hit by intensified Russian attacks on ports this month, pointing to a likely decline in trade volumes despite efforts to reroute shipments by rail. Ukraine is the world's top sunflower oil exporter.

This month saw an escalation in near-daily Russian drone and missile strikes on ports in the Odesa region, significantly curbing export capacity. According to estimates from the Ukrainian Agri Council (UAC), at least one of the country's key export ports is either shut down or operating at just 20% of capacity.

Oil export figures under pressure: The Agri Council revealed a clear gap between contracted volumes and quantities actually shipped as of 22 December:

• Contracted volumes: 410,000 tonnes of sunflower oil.
• Actually shipped: just 275,000 tonnes.
• Forecast for month-end: total exports for the month are unlikely to exceed 350,000 tonnes.

These figures come in lower than last December, when Ukraine successfully exported 378,000 tonnes of sunflower oil.

The Council warned that reduced port and deep-water capacity would lead to a significant drop in exports, noting that river logistics routes have also been affected, forcing traders to try to secure rail terminal slots as a limited alternative.

Source: Reuters