Palm oil and fractions market in Russia

Earlier Report Observations

The Russian market for palm oil and fractions grew steadily from 1.15 million tons in 2018 to a peak of 1.26 million tons in 2021. This expansion was primarily driven by regulatory changes, notably amendments to the technical regulation on milk and dairy product safety that took effect in July 2018, which stimulated record palm oil imports. The government's maintenance of import benefits and its subsequent rejection of proposals for strict usage limits in 2021 further supported sustained high import volumes and market growth.

From 2022, the market entered a phase of contraction, declining to 990 thousand tons by 2024. A key driver was a temporary export ban by Indonesia, the dominant supplier, which caused supply shortages and higher costs in 2022. Concurrently, rising domestic production of sunflower oil, which increased by over 13% in 2023, intensified competition and reduced palm oil's market share. The ongoing shift toward greater domestic production of vegetable oils and changes in global trade patterns continued to pressure import volumes through 2024.

In 2025, available data indicates a rise in domestic production of palm oil and fractions to 172 thousand tons, continuing the trend of growing local output observed in the latter part of the period.

Production palm oil and fractions in Russia

In kind, 2018-2021, K t

Between 2018 and 2021, Russia was one of the world's leading producers of palm oil and fractions, ranking 20th globally by production volume.

Top producers of palm oil and fractions, 2018-2021

World map of production of palm oil and fractions, 2018-2021

Russia's palm oil and fractions production increased for the second consecutive year. In 2021, production reached 185.1 thousand tons, marking a significant year-over-year rise of 16.9%. Over the 2018-2021 period, production grew by 47%, with a compound annual growth rate of 13.7%. The lowest production level was recorded in 2019 at 116.2 thousand tons. That year also saw the largest decline of 7.8%, while the biggest increase occurred in 2020 with a 36.2% jump.

Annual dynamics of production in Russia in kind, 2018-2021, K t

Exports palm oil and fractions from Russia

Exports in kind, K t

The market showed noticeable fluctuations during this period. Exports reached their lowest point in 2020 and peaked in 2018, with a 3.3-fold difference between these years. In 2021, palm oil and fractions exports from Russia stood at 22 thousand tons, reflecting a substantial 92.5% increase compared to the previous year. The minimum value was recorded in 2020 at 11 thousand tons, while the largest decline occurred in 2019 with a 61.4% drop.

Annual dynamics of product's exports from Russia in kind, 2018-2021, K t

From 2018 to 2021, Kazakhstan was the dominant market for Russian palm oil and fractions exports, accounting for 78.9% of total flows, with other countries making up the remaining share.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Russia in kind, 2018-2021

Exports in value, M $ US

The market demonstrated volatility over the observed period. Export values reached their lowest point in 2020 and peaked in 2018, showing a 2.9-fold fluctuation. In 2021, foreign palm oil and fractions supplies from Russia totaled 28 million US dollars, representing a steep 171.8% increase from the previous year. The minimum value was recorded in 2020 at 10 million US dollars, while the largest decline occurred in 2019 with a 62.8% decrease.

Annual dynamics of product's exports from Russia in value, 2018-2021, M $ US

During 2018-2021, Kazakhstan remained the primary destination for Russian palm oil and fractions exports, accounting for 76.7% of total export value, while the remaining volume was distributed among other countries.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Russia in value, 2018-2021

Imports palm oil and fractions to Russia

Imports in kind, K t

In 2021, Russia's palm oil and fractions imports amounted to 1 100 thousand tons, indicating a modest 7.3% increase compared to 2020. Over the 2018-2021 period, imports grew by 3.7%, with a compound annual growth rate of 1.2%. The minimum value was recorded in 2020 at 1 025 thousand tons, which also saw the largest decline of 3.4%.

Annual dynamics of product's imports to Russia in kind, 2018-2021, K t

From 2018 to 2021, Indonesia remained the overwhelmingly dominant supplier of palm oil and fractions to Russia, accounting for 91.5% of total imports in volume terms.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Russia in kind, 2018-2021

Imports in value, M $ US

Russia's palm oil and fractions imports increased for the second consecutive year. In 2021, imports reached 1 272 million US dollars, representing a 60.3% year-over-year increase. Between 2018 and 2021, imports grew by 69.8%, equating to a 19.3% annualized rate. The minimum value was recorded in 2019 at 668 million US dollars, which also saw the largest decline of 10.8%.

Annual dynamics of product's imports to Russia in value, 2018-2021, M $ US

Throughout 2018-2021, Indonesia dominated Russia's palm oil and fractions import structure in value terms, accounting for 89.9% of total flows, while other markets formed a less significant portion.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Russia in value, 2018-2021