Russia suspends sunflower oil duty till end of August to boost exports

Russia, one of the world's top producers and exporters of sunflower oil, on Friday suspended floating duty rates on sunflower oil and sunflower meal until August 31 to boost exports and help local producers. 

The export duty was introduced in 2021 in order to protect the domestic market from price spikes and was set at 4,739 roubles ($59.61) per ton of sunflower oil in July. 

"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 a statement. 

According to the US Department of Agriculture, Russia and Ukraine produce over half of the world’s sunflower seeds and are responsible for nearly three-quarters of total sunflower oil and meal exports. 

 

IKAR consultancy head Dmitry Rylko estimated that Russia exported 4.7 million tons of sunflower oil in the 2024/25 season, which will end on August 31, compared with a record 5.3 million tons in the previous season. 

"We expect some revival in exports," Rylko told Reuters. He estimated that Russia will export 350,000 tons in August. IKAR forecasts this year's sunflower seed harvest at no less than a record 18 million tons. 

Russian lobby group Oil and Fat Union estimates that Russia is the world's leading producer of sunflower oil and the second largest exporter after Ukraine. 

Russia exports sunflower oil to India, Turkey, Iran, China and Egypt. It exports sunflower meal, used in animal feed, to Turkey, Belarus, China and the European Union. 

Russia's sunflower oil production became unprofitable in 2024 due to rising domestic prices for seeds. Several plants across Russia stopped operations as a result. 

Exports fell by 38 per cent in the first half of 2025, according to customs data, which does not take into account trade with sanctioned countries such as Iran. 

Head of the Oil and Fat Union Mikhail Maltsev said that the duty suspension for the remainder of the season will help exporters clear their stockpiles. 

"In the new season, we hope the market will stabilise and that procurement prices for sunflower seeds will once again make exports economically viable for processing plants," Maltsev said.