Cabinet Introduces Priority in Export Logistics for Ukrainian Vegetable Oil

The Cabinet of Ministers has introduced a temporary priority for the transportation and export of Ukrainian vegetable oil via railways, through sea and river ports, and across the state border. This priority applies to sunflower, soybean, and rapeseed oil produced in Ukraine. The mechanism is implemented as an experiment for the duration of martial law, but for a period of no more than two years.

Specifically, Ukrzaliznytsia is required to prioritize the transportation of vegetable oil by block trains to sea and river ports, border stations, and hubs where cargo is transshipped to other modes of transport for further export. In maritime and river ports, vessels arriving to load bulk vegetable oil for export will be given primary berth placement.

Ships carrying vegetable oil will also receive priority when organizing passage through the Sulina Canal. At the state border, transport carrying oil must undergo border control on a priority basis. Where technically feasible, separate corridors, railway tracks, or lanes may be allocated for such cargoes.

Products included in the government decision cover soybean oil (HS code 1507), sunflower, safflower, and cottonseed oils (1512), as well as rapeseed and mustard oils (1514), encompassing both refined and unrefined products. Additionally, the government established a priority for the import of fuel into Ukraine, including motor gasolines, diesel fuel, and liquefied gas.

The necessity for prioritizing vegetable oil is explained by the risk of accumulation due to export logistics bottlenecks, which could lead to the shutdown of processing plants and a reduction in oilseed purchases. Another key argument is the higher added value of oil compared to grain: according to government calculations, exporting 1 ton of oil generates about $1,300 in foreign exchange revenue, whereas 1 ton of corn or wheat yields about $220.