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Russia is set to maintain its restrictive export duty regime on oilseeds through 2026, a move that continues to stifle raw material shipments to the global market. According to reports from UkrAgroConsult, the most stringent measures target sunflower seeds, which face an export duty of 50% of their customs value, with a minimum floor of RUB 32,000 per tonne (approximately $386/t). Other key crops are also heavily taxed: soybeans carry a 20% duty (minimum $100/t), rapeseed is taxed at 30% (minimum €165/t), and linseed faces a 10% levy. These tariffs have rendered the export of many oilseeds economically unfeasible for Russian producers.
The tariff structure has a profound impact on sunflower seed producers, as the high minimum duty effectively prohibits exports to markets outside the Eurasian Economic Union. While soybean and rapeseed exports are still technically possible, the financial burden significantly erodes profit margins. For instance, with soybeans priced at $450/t, a $100/t duty consumes over 22% of its value, severely undermining the competitiveness of Russian oilseeds on the global stage.
Moscow's primary objective with these export barriers is to incentivize the domestic crushing industry. By restricting the flow of raw materials abroad, the government ensures that local processing plants have access to sunflower seeds, soybeans, and rapeseed at lower costs, thereby maximizing their operational capacity. However, this strategy creates a challenging environment for farmers, who are denied the chance to sell their harvests at higher international market prices.
The pressure on domestic prices becomes particularly acute during years of bumper harvests and surplus supply. With export channels largely blocked, producers must rely on domestic buyers, leading to fierce competition and a subsequent drop in purchasing prices. This dynamic benefits processors through cheaper feedstock but significantly lowers the profitability of oilseed cultivation for farmers.
Current regulations stipulate that the sunflower seed export duty will remain in place until August 31, 2028, with a potential review of some restrictions scheduled for September 2027. While agricultural producers continue to lobby for lower duties to regain access to global markets, processors remain staunch supporters of the existing measures to protect their domestic supply. The future of Russia's tariff policy will depend on how the government balances the competing interests of these two critical sectors.
Source: UkrAgroConsult