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The oilseed-processing sector has emerged as a resilient pillar of the Ukrainian economy, significantly expanding its production infrastructure despite the ongoing Russo-Ukrainian war.
According to Stepan Kapshuk, Director General of the UkrOliyaProm association, Ukraine has successfully constructed 10 new oilseed-processing plants since the beginning of the full-scale invasion in 2022. Speaking at the 25th International Fat & Oil Industry Conference 2026, Kapshuk expressed surprise at the industry's growth under martial law. 'I never would have believed that anyone in Ukraine would build plants during these years... Yet 10 plants have been built,' he stated during the event reported by Latifundist on Nov. 2.
Kapshuk highlighted that the industry is uniquely positioned as one of the few sectors capable of supplying domestically manufactured equipment for the construction of integrated processing facilities. However, despite the physical expansion, existing infrastructure is not yet fully utilized. In 2025, Ukrainian facilities processed 14 million metric tons of sunflower seeds, which accounts for approximately 68% of the country's total processing capacity.
Logistics for finished goods continue to present major hurdles for the industry. The Director General noted that shipping difficulties have caused massive accumulations of oilseed meal at various plants. Prolonged storage of meal poses a risk of mold development and quality degradation. To mitigate this, Kapshuk proposed the implementation of mixed rail routes designed to transport vegetable oil and meal simultaneously.
In response to these logistical pressures, the Ukrainian Cabinet approved a pilot project on Oct. 20. This initiative grants priority status to shipments of vegetable oil and fuel across road and rail networks. It also ensures preferential treatment for ship berthing at ports and expedited customs clearance at border crossings.
Source: The New Voice of Ukraine