Ukraine’s soybean and rapeseed exports grind to a halt after new duty

After the introduction of a 10% duty on soybean and rapeseed exports, shipments of oilseeds from Ukrainian ports have virtually stopped, according to a letter from the All-Ukrainian Agrarian Council to Prime Minister Yulia Sviridenko published on Monday.

The problem is the lack of a procedure for documenting the origin of products grown by agricultural producers or cooperatives. They should be exempted from paying customs duties, but this is impossible to implement due to gaps in the legislation.

"Therefore, as of September 5 this year, exports have been stopped completely. With the payment of a 10% duty, exports are possible, but ships are waiting for mixed consignments from both producers and traders to be loaded in ports," the letter says.

The Cabinet of Ministers has three months to bring its regulations in line with this law. Farmers asked to speed up this process.

"In order to unblock exports as soon as possible [...] we ask you to instruct the Ministry of Finance [...] to immediately develop and ensure the adoption of the necessary changes," the letter says.

• The export duty of 10% on soybeans and rapeseed should go to the State Fund for Support of Agricultural Producers. Starting from 2030, the export rate will be reduced by 1 percentage point annually to 5%.
• Agricultural producers and cooperatives that grow their own products are exempt from paying export duties.