Russia redirects vegetable oil exports to Baltic ports after EFKO terminal shutdown

Russian vegetable oil producers are being forced to seek alternative export routes following the shutdown of EFKO’s terminal in Taman. Exporters are now primarily looking to Baltic ports, as ports around St. Petersburg have experience handling liquid bulk cargoes. However, their handling capacity remains limited.

The disruption is significant for Russia’s vegetable oil exports, as more than 50% of the country’s shipments previously moved through ports in the Azov and Black Sea regions. The situation worsened after EFKO’s vegetable oil terminal in Taman suspended operations following a drone attack on the night of July 30.

Alternative routes under consideration include shipments across the Caspian Sea and through Iran, which could help maintain supplies to India and other Asian markets. However, this route requires the oil to be transshipped three times, substantially increasing logistics costs. Another option is to expand shipments in flexitanks, which currently account for around 10% of Russian exports.

Exporters are also considering transporting oilseeds and processed oilseed products by road to ports in the Gulf of Oman. This option is being explored primarily to fulfil existing contractual obligations to buyers in the Middle East.

Redirecting exports to the Baltic significantly lengthens transport routes and raises costs for Russian suppliers. Deliveries from central and southern regions to Baltic ports can take one to two weeks, while the ports themselves have limited capacity for handling vegetable oils. As a result, fully replacing traditional export routes through the Azov and Black Sea regions will be difficult in the short term.

Tags: Ukraine, export, edible oils