Russia urged to cut sunflower oil and meal export duties as alternative logistics costs rise

Russia’s Fat and Oil Union has proposed revising the mechanism for calculating export duties on sunflower oil and meal due to a significant increase in logistics costs. Expenses have risen as shipments are redirected from Azov-Black Sea ports to alternative routes. The union is already discussing possible adjustments to the duties with the Russian Agriculture Ministry.

The issue has become particularly pressing following a sharp increase in export duties. In September, the duty on sunflower oil exceeded RUB 14.3 thsd/t, almost doubling from the previous month. The duty is calculated as 70% of the difference between the base price and the monthly average indicative price.

Specific parameters for a possible revision have not yet been determined. Market participants consider raising the base price, or the so-called cut-off price, one of the most effective options, as this would reduce the duty. This mechanism was already used in May 2026. A temporary suspension of the duties until the end of the year or freezing them at the current level is also being discussed.

Industry participants primarily attribute the need to revise the mechanism to higher export costs caused by the redirection of cargo flows away from the Azov-Black Sea basin. Rising transportation costs combined with high export duties are reducing the competitiveness of Russian sunflower oil and meal on international markets.

Tags: sunflower meal, duties, Russia, sunflower oil, export