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Business urges authorities to prevent export restrictions on oilseeds

16/ 06/ 2025
  Member companies of the Grain and Oilseeds Committee of the European Business Association have expressed concern over reports suggesting possible export restrictions (duties and/or quotas) on soybean and rapeseed exports from Ukraine to the European Union. Agricultural exports play a key role in strengthening Ukraine’s economy, ensuring food security, providing employment, and contributing to the state budget. A predictable and stable agricultural policy is therefore essential. Given the ongoing war and fragile economic situation, the Committee believes that such initiatives are extremely risky and contradict Ukraine’s strategic interests. They could lead to: Destabilisation of the agricultural sector – a key part of the economy Soybeans and rapeseed are highly profitable crops, crucial for the livelihoods of tens of thousands of farmers, especially small and medium-sized ones in frontline and affected regions. Duties or quotas could crash purchase prices and lead to production decline. Loss of foreign currency earnings In 2023–2024, rapeseed and soybean exports to the EU provided significant foreign currency inflows. Artificial restrictions could cut these revenues and harm macroeconomic stability. Reduced investor and partner confidence Export duties signal policy unpredictability, undermining Ukraine’s investment appeal during wartime. Damage to Ukraine’s reputation as a reliable supplier Ukraine has built a reputation for consistent agricultural exports to the EU. Market interference could jeopardise long-term contracts and trust among European buyers. The Committee also warns against repeating past mistakes. Between 2017 and 2020, VAT refund restrictions on soybean and rapeseed exports effectively served as export barriers. This led to lower domestic prices, reduced farmer income, and discouraged oilseed production. Similarly, between 2006 and 2011, grain export quotas caused major losses to the sector and hurt Ukraine’s international image. In 2010/11 alone, Ukrainian farmers reportedly lost between $1.9 and $2.6 billion due to export quotas. The business community remains open to constructive dialogue to ensure uninterrupted export of Ukrainian agricultural products — a critical factor for supporting the sector during war and rebuilding efforts, as well as reinforcing Ukraine’s image as a trustworthy global partner. For reference: The EBA Grain and Oilseeds Committee unites the majority of international and Ukrainian companies operating in Ukraine’s grain market. These businesses continue to operate despite wartime challenges and ensure the logistics of agricultural goods from Ukrainian farmers to global markets.

Member companies of the Grain and Oilseeds Committee of the European Business Association have expressed concern over reports suggesting possible export restrictions (duties and/or quotas) on soybean and rapeseed exports from Ukraine to the European Union.

Agricultural exports play a key role in strengthening Ukraine’s economy, ensuring food security, providing employment, and contributing to the state budget. A predictable and stable agricultural policy is therefore essential.

Given the ongoing war and fragile economic situation, the Committee believes that such initiatives are extremely risky and contradict Ukraine’s strategic interests. They could lead to:

Destabilisation of the agricultural sector – a key part of the economy

Soybeans and rapeseed are highly profitable crops, crucial for the livelihoods of tens of thousands of farmers, especially small and medium-sized ones in frontline and affected regions. Duties or quotas could crash purchase prices and lead to production decline.

Loss of foreign currency earnings

In 2023–2024, rapeseed and soybean exports to the EU provided significant foreign currency inflows. Artificial restrictions could cut these revenues and harm macroeconomic stability.

Reduced investor and partner confidence

Export duties signal policy unpredictability, undermining Ukraine’s investment appeal during wartime.

Damage to Ukraine’s reputation as a reliable supplier

Ukraine has built a reputation for consistent agricultural exports to the EU. Market interference could jeopardise long-term contracts and trust among European buyers.

The Committee also warns against repeating past mistakes. Between 2017 and 2020, VAT refund restrictions on soybean and rapeseed exports effectively served as export barriers. This led to lower domestic prices, reduced farmer income, and discouraged oilseed production.

Similarly, between 2006 and 2011, grain export quotas caused major losses to the sector and hurt Ukraine’s international image. In 2010/11 alone, Ukrainian farmers reportedly lost between $1.9 and $2.6 billion due to export quotas.

The business community remains open to constructive dialogue to ensure uninterrupted export of Ukrainian agricultural products — a critical factor for supporting the sector during war and rebuilding efforts, as well as reinforcing Ukraine’s image as a trustworthy global partner.

For reference:

The EBA Grain and Oilseeds Committee unites the majority of international and Ukrainian companies operating in Ukraine’s grain market. These businesses continue to operate despite wartime challenges and ensure the logistics of agricultural goods from Ukrainian farmers to global markets.

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