Ukraine holds 33% of global sunflower oil exports despite aggressive Russian expansion

Ukraine continues to maintain its position as the world’s leading exporter of sunflower oil with an estimated 33% market share, even as Russia rapidly expands its processing capacity and attempts to displace Ukrainian producers from traditional markets.

This was stated by analyst Maksym Kharchenko from the consulting agency UkrAgroConsult during the BLACK SEA GRAIN.KYIV-2026.

According to him, Russia is strengthening its global position by increasing crushing capacity and has already partially taken over Ukraine’s former leading position in India. A similar trend is visible in Turkey and Italy, where Russian market presence continues to grow.

Kharchenko noted that Ukraine’s sunflower processing industry remains highly export-dependent, as domestic consumption does not exceed 300,000 tons. Despite export potential of up to 6 million tons annually, actual shipments in recent years have remained below 5 million tons due to logistics constraints and yield variability. In February 2026, sunflower processing margins stood at around 7%.

According to company data, the top five global exporters of sunflower oil are Ukraine (33%), Russia (30%), Argentina (14%), Turkey (5%), and Kazakhstan (5%).

“Ukrainian oil remains positioned in the premium segment. We expect rising supply in the Black Sea region, which may put some pressure on prices. However, amid instability in the Middle East and rising soybean oil prices, Ukrainian oil is expected to remain competitive,” Kharchenko said.

He also added that competition is intensifying in other segments as well. For the 2026/27 season, Russia increased winter rapeseed acreage by more than 50%, targeting the Chinese market. Although Ukrainian and Russian interests in rapeseed oil currently barely overlap, analysts expect inevitable competition in the future.

At the same time, Ukraine is showing strong growth in rapeseed oil exports, with volumes already double last year’s level. Key buyers include EU countries (Poland, Spain, Italy) and Thailand. A similar trend is observed in soy products, where soybean meal exports have increased by 1.5 times, with Poland as the main destination.

The agency noted that domestic processing was supported by Ukraine’s introduction of a 10% export duty on rapeseed and soybean seeds in 2025. This helped retain raw materials in the country and boost exports of value-added products.

UkrAgroConsult expects oilseed production in Ukraine to continue growing in the 2026/27 season, with sunflower output potentially reaching 13.7 million tons. Despite war-related risks, the oilseed sector is recovering faster than others, with planted areas already exceeding pre-2022 levels.