Russian sunflower oil exports fall despite high prices
Global sunflower oil prices are rising, but Russia’s exports fell 14% due to weak margins, a strong ruble, high duties, and logistics issues. Despite strong output, profitability pressures and competition, especially from Argentina, are limiting Russia’s ability to capitalise on global demand.
Global sunflower oil prices have increased, but Russian companies are unable to take advantage of the situation and boost revenues by expanding shipments. Despite a strong harvest and growing production of vegetable oils, including sunflower oil, exports are declining: in the first six months of the 2025/2026 season, Russia’s sunflower oil exports fell by 14%. Several unfavorable factors have converged, including low margins in the sector, a strong ruble, transportation issues, and high export duties. The magazine Forbes analyzed what is preventing Russia from capitalizing on strong demand.
The price of sunflower oil in Black Sea ports rose by more than 15% in 2025, from $1,051 to $1,212 per ton by the end of the year, according to Liliya Varygina, an expert at the consulting agency OleoScope. Global prices are largely benchmarked to FOB Black Sea levels.
On the very first day of hostilities in the Middle East, March 1, offer prices for sunflower oil shipments in Black Sea ports increased by $5, from $1,305 to $1,310 per ton. Over the first week of the conflict, prices rose by $30, and by $55 over the month. As of April 2, the price for prompt delivery reached $1,320 per ton.
According to experts, prices could have been even higher, but their growth is being restrained by discounted sunflower oil from Argentina.
Russian exporters ship more than 65% of their sunflower oil production to foreign markets. In 2025, Russia produced 7.2 million tons of sunflower oil, while total vegetable oil output exceeded 10.5 million tons.
In January–February 2026, vegetable oil production increased by 5.9% year-on-year to 1.8 million tons, while sunflower oil output grew by 3.2% to 1.3 million tons. Total production for the 2025/2026 season is expected to reach around 10.8 million tons, including more than 8 million tons of sunflower oil.
Nevertheless, exports dropped to 2.31 million tons in the first half of the season. The main buyers remain India, Turkey, and Belarus.
At the same time, the market environment remains challenging: rising prices are offset by higher costs for raw materials, logistics, and export duties, reducing profitability. Additional pressure comes from variable export tariffs and logistical bottlenecks, which in some cases push export operations to the brink of zero or even negative margins.
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Source : Ukr Agro Consult
