Refined palm oil and fractions market in Russia

Earlier Report Observations

Between 2018 and 2021, the Russian market for refined palm oil and its fractions grew from 1.15 million tons to 1.26 million tons. This expansion was primarily driven by rising imports, as increased demand and expanded supplies from Indonesia and Malaysia boosted volumes. The COVID-19 pandemic in 2020 introduced global economic shifts, while regulatory measures like higher export duties on sunflower seeds indirectly supported palm oil's competitiveness. By 2021, poor harvests and rising global prices for oilseeds further enhanced palm oil's cost advantage, pushing market volume to a peak.

From 2022 onward, the market contracted, falling to 991 thousand tons by 2024. Sanctions and geopolitical tensions disrupted logistics, particularly in the Red Sea, hampering imports. Simultaneously, growing domestic production of sunflower oil intensified competition, and world palm oil prices reached multi-year highs, reducing its economic appeal. In 2024, imports hit a ten-year low due to logistical hurdles and price increases. By 2025, production increased slightly, supported by new processing facilities, while persistent logistical challenges and regulatory measures like higher sunflower export duties continued to shape the market environment.

Production refined palm oil and fractions in Russia

In kind, 2018-2021, K t

Russia's production of refined palm oil and fractions has increased for the second year in a row. In 2021, the country produced 185.1 thousand tons, which represents a 16.9% increase compared to 2020. Looking at the period from 2018 to 2021, production grew by 47%, translating to an annualized 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%. In contrast, the most significant increase occurred in 2020, with production jumping by 36.2%.

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

Exports refined palm oil and fractions from Russia

Exports in kind, K t

The export market demonstrated volatility during the observed period. Exports reached their peak in 2018 and hit their lowest point in 2020, with a 3.5-fold difference between these years. In 2021, Russia's cross-border shipments of refined palm oil and fractions amounted to 21 thousand tons, showing a substantial increase of 102.5% compared to 2020. The minimum export volume was recorded in 2020 at 11 thousand tons. The largest decline occurred in 2019, with exports dropping by 61.4%.

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

From 2018 to 2021, Kazakhstan remained the primary destination for Russia's exports of refined palm oil and fractions in kind, accounting for 80.0% of total flows. The remaining 20.0% was distributed among various smaller markets.

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 showed noticeable fluctuations in performance over this period. Export values peaked in 2018 and reached their lowest point in 2020, with a 3.1-fold difference. In 2021, Russia exported refined palm oil and fractions worth 27 million US dollars, marking a sharp rise of 186.2% compared to the previous year. The minimum value was recorded in 2020 at 10 million US dollars. The largest decline occurred in 2019, with a drop of 62.6%.

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

Throughout 2018–2021, Kazakhstan accounted for 77.7% of Russia's total export value for refined palm oil and fractions. The remaining 22.3% was shared among many countries, each with smaller individual shares.

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

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

Imports refined palm oil and fractions to Russia

Imports in kind, K t

After a two-year decline, Russia's imports of refined palm oil and fractions increased in 2021. The import volume reached 1 100 thousand tons, reflecting a moderate uptick of 7.3% compared to the previous year. Between 2018 and 2021, imports grew by 3.7%, equating to an annualized rate of 1.2%. The minimum import volume was recorded in 2020 at 1 025 thousand tons. The largest decline occurred in 2020, with a decrease of 2.6%.

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

From 2018 to 2021, Indonesia remained the dominant and nearly exclusive source for Russia's imports of refined palm oil and fractions in kind, holding a share of 91.5%.

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 imports of refined palm oil and fractions in value terms increased for the second consecutive year. In 2021, the country imported a total of 1 272 million US dollars' worth, up by 60.3% from 2020. Over the period from 2018 to 2021, imports grew by 69.8%, with a compound annual growth rate of 19.3%. The minimum value was recorded in 2019 at 663 million US dollars. The largest decline occurred in 2019, with a drop of 11.4%.

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

Throughout 2018–2021, Indonesia remained the main source for Russia's imports in value terms, accounting for 89.9% of total flows. The remaining 10.1% was distributed across various smaller markets.

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

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