Russian-Turkish vegoils market in new conditions


As is well-known, Turkey stopped duty-free trade in sunseed products with Russia in March 2017. Specifically, it imposed a 36% duty on sunoil and a 13.5% duty on sunmeal and thereby deadlocked the bilateral trading relations. Remarkably, not only the Russians have to adapt and find ways out of the present situation.

As a reminder, Turkey is the top importer of Russian sunoil, absorbing up to 40% of its total exports in some periods. Seemingly, the troubles with Turkey that arose in mid-March must have affected the sunoil trade results, but that month’s export figure, on the contrary, reached rather high indicator at 73.7 KMT.

Altogether, 404 KMT was exported to Turkey in the seven months of the current marketing year – the country still tops the importer list with its export share exceeding 35%. This stems from the execution of previously signed contracts along with the readiness of the Turkish party to assume responsibility for the settlement of controversial issues.

Nevertheless, the Russo-Turkish market segment is expected to feature a trade decline in the following months.

The present situation is a serious problem for Russian exporters. If the duties are not abolished, Russia will enter the new season with high sunoil inventories that will entail respective consequences, UkrAgroConsult notes.

Full version of article available to subscribers for weekly market report “Black Sea Vegoils & CIS” and “Online market review” by UkrAgroConsult.




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