Russia more than doubles sunflower oil export duty for August

August duty rises to 7,748 rubles per tonne

Russia will more than double its sunflower oil export duty in August, raising the levy to 7,748 rubles per tonne from 3,294 rubles per tonne in July, according to Zol.ru. The August rate was calculated using an indicative price of $1,298 per tonne, almost unchanged from $1,297 per tonne used for July.

The duty has now increased for a second consecutive month after falling sharply earlier in the year. Ruseed’s analytical center listed monthly rates of 4,650 rubles per tonne in May, 1,338 rubles in June, 3,294 rubles in July and 7,748 rubles in August. Despite the latest rise, the August levy remains well below the April peak of 16,200 rubles per tonne.

Russia will also reintroduce a duty on sunflower meal exports. The August rate will be 312.4 rubles per tonne, calculated from an indicative price of $228.4 per tonne, compared with $215 per tonne previously. The meal duty was zero from May through July, the Agriculture Ministry’s website reported.

High prices meet tighter Black Sea logistics

Global sunflower oil prices remain elevated. OleoScope analyst Lilia Varygina said the FOB Black Sea price had gained 1.9%, or $25, to $1,345 per tonne by July 27. Discounts on Argentine sunflower oil are limiting further price growth, she added. Ruseed said international prices have remained near $1,300 per tonne for several months, supported by steady demand.

Export logistics have become more difficult. Agroinvestor previously reported that navigation through the Azov-Don Canal had been restricted since July 10 following drone attacks. ProZerno chief executive Vladimir Petrichenko said sunflower oil exports could consequently move only through deep-water ports, reducing shipment capacity for processed oilseed products.

The higher duty adds another cost for exporters already facing expensive sunflower seed, a strong ruble and seasonal maintenance at crushing plants. However, the nearly unchanged indicative oil price alongside the sharp rise in the levy indicates that the duty’s movement is not being driven by the international benchmark alone. Ruseed said the new Russian sunflower harvest will now be a key factor.

India and Turkey remain the largest buyers

Russian vegetable oil exports increased 5% year on year to 3.73 million tonnes in January-June, according to OleoScope. Sunflower oil accounted for 2.55 million tonnes, up 6%. India received 753,000 tonnes and Turkey 563,000 tonnes, making them the leading buyers. Both markets are supplied through Black Sea ports and are therefore exposed to the current logistics constraints.

Varygina said further growth in sunflower oil export volumes was not expected because of seasonal and logistical factors. Her forecast for 2025/26 exports remains 4.5-4.8 million tonnes. The Russian Oils and Fats Union separately maintained a forecast of 4.7 million tonnes after shipments in May rose 35% from April following an earlier duty reduction.

China is the main market showing strong expansion. Russian oil shipments to China rose 27% and exceeded $1 billion, while meal exports increased 91% to $225 million over the same period, according to Varygina. This growth gives processors another outlet, although India and Turkey remain substantially larger buyers by physical volume.

New crop will shape the next duty moves

Russia’s sunflower area exceeded 13 million hectares for the first time in 2026, supporting expectations of a large harvest. Ruseed said harvesting progress and estimates of total production would exert the greatest influence on the market in the coming months.

A larger crop could improve seed availability for crushers, but it does not guarantee lower export prices or duties. Ruseed noted that quotations continued to rise in August and September 2025 despite the arrival of the new harvest. If global demand remains strong, the center sees few grounds for a substantial reduction in the export duty at the beginning of autumn.