Decline in Russia’s Vegetable Oil Exports: Sunflower Oil in Crisis

According to the Russian publication Kommersant, in the first quarter of 2025, Russia significantly reduced its vegetable oil exports by 27% compared to the same period last year. Sunflower oil was hit the hardest, with exports dropping by 38% to 909 thsd tonnes. The main reasons include rising raw material costs, high export duties, and the strengthening of the ruble, which have made trading this product unprofitable. Meanwhile, rapeseed oil exports grew by 29% due to demand from China, which imposed 100% tariffs on Canadian products.

The total volume of vegetable oil exports from Russia in Jan–Mar 2025 amounted to 1.46 mln tonnes, a 27% decrease year-on-year, as reported by the consulting agency OleoScope. In addition to sunflower oil, soybean oil exports also fell by 27%, totaling 154 thsd tonnes. In Jan, sunflower oil exports dropped by 7%, in Feb by 55%, and in Mar by 47%. This decline contrasts with earlier growth: from Sep–Dec 2024, oil exports rose by 20% compared to the same period the previous year.

The fall in exports is linked to several factors, including a 20% reduction in processing volumes and negative profitability. According to Mikhail Maltsev, Executive Director of the Oil and Fat Union, in Feb, the profitability of sunflower oil exports was minus 23%, while it typically ranges between 5–7%. A 66% rise in sunflower seed procurement prices (to 39.9 thsd RUB per tonne by early Apr) significantly outpaced the increase in export prices, which reached $1.16 thsd per tonne (+48.2% year-on-year).

High duties, which increased due to the price disparity, further intensified pressure on exporters. The ruble’s strengthening also hampered the competitiveness of Russian oil on the global market. As noted by Andrey Kucherov, Director of the Agribusiness Competence Center at Rexoft Consulting, producers tried to brace for worsening conditions by exporting a third of their annual volume in Q4 2024, taking advantage of a “window” before duty hikes.

Experts warn that the current situation is forcing companies to cut production, which could lead to further export declines. Meanwhile, rapeseed oil remains an exception, showing growth due to external demand. However, the overall outlook for Russia’s vegetable oil market is grim, and without changes in regulatory mechanisms or raw material price stabilization, the crisis may deepen.

Tags: sunflower oil, export, soybean oil, prices, rapeseed oil, Russia