Russia suspends sunflower oil export duty to boost global sales

Russia has suspended export duties on sunflower oil and meal until 31 August to boost shipments and support local producers, saying domestic supply is stable and the move will not affect availability for Russian consumers.

In a move aimed at boosting exports and supporting local producers, the Russian government announced on Friday (25 July) that it will suspend its floating export duties on sunflower oil and sunflower meal. The decision, effective immediately, is expected to increase overseas shipments without impacting domestic availability.

The export duty, originally introduced in 2021 to shield Russian consumers from soaring food prices, was set at 4,739 roubles (around $59.61) per ton in July. But with domestic supply now stable, officials say the temporary removal of the tariff is timely and beneficial.

“At present, the domestic market is fully supplied with sunflower oil. Therefore, the suspension will not affect the availability of sunflower oil for Russians,” the government said in an official statement.

The country’s agricultural export agency, Agroexport, welcomed the government’s decision to suspend export duties, saying it will help increase shipments abroad and support farmers and processing companies.

Experts in the industry agree. Dmitry Rylko, head of the Institute for Agricultural Market Studies (IKAR) consultancy, expects Russia to export around 350,000 tons of sunflower oil in August. He noted that total exports for the current season (2024/25) will likely reach 4.7 million tons slightly below last year’s record of 5.3 million tons but signs of recovery are emerging.

Russia is one of the world’s top producers and exporters of sunflower oil, a status it shares with neighbouring Ukraine. Together, the two countries account for over 50% of global sunflower seed production and nearly 75% of all sunflower oil and meal exports, according to the U.S. Department of Agriculture.

With the suspension in place until  31 August, international buyers and local producers will be watching closely to see if the measure could be extended beyond that date.

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