Ukraine introduces export duties on soy and rapeseed

UkrAgroConsult

The President of Ukraine has today signed Law No. 4536, which introduces changes to tax and customs legislation and provides for the imposition of export duties on soy and rapeseed seeds. The document is awaiting publication and will come into force shortly.

According to the law, an export duty of 10% on soy and rapeseed will apply until January 1, 2030, after which the rate will decrease by 1 percentage point annually, down to 5%. Exports of self-grown products are exempt from the duty. The law specifies that the new rules will take effect for soy and rapeseed or colza seeds the day after the law is officially published.

The main goal of these changes is to limit the export of raw materials without processing and to create incentives for the development of domestic processing enterprises. The government expects that these measures will boost the production of vegetable oils and meal in Ukraine, as well as increase the added value in the agricultural sector.

For farmers, this means a need to revise their export strategies. Some exporters may lose part of their profit due to the duties, while processing enterprises will gain a competitive advantage through more affordable raw materials. Experts note, however, that the effectiveness of these measures will depend on state support and investments in processing infrastructure.

The introduction of export duties has sparked debate among market participants. Some traders believe that export restrictions may reduce the attractiveness of the Ukrainian market for foreign buyers. Others argue that this step will help build a full value chain within the country and strengthen Ukraine’s position as a producer of finished products rather than just a supplier of raw materials.

Tags: Ukraine, soybean, rapeseed, duties