Procedural issues: who and what prevents Ukrainian agricultural producers from trading soybeans and rapeseed
16 October 18:42
ANALYSIS FROM 
In early October, the Cabinet of Ministers approved a mechanism that allows farmers to export their soybeans and rapeseed without paying a 10% duty. But full exports of these products have not yet resumed. Komersant found out why this is happening and what is happening in this market.
This export-customs story, which has been going on since June, has had at least three episodes, two of which unfolded in parliament, where there were two attempts – unsuccessful and successful – to pass amendments that eventually legalized export duties on soybeans and rapeseed, and another in government offices, where, starting on September 2, when the law was signed by the president, a mechanism was being developed to allow producers to export their soybeans and rapeseed without paying duties. All of this was happening against a backdrop of complete uncertainty: first, around whether the amendments would be adopted, then whether the president would sign the law, and then how farmers would prove that they grew the soybeans or rapeseed. All this did not help trade.
The result for producers was problems with paying customs duties, lower prices in the country, and the lack of full exports. Which, by the way, has not yet started working at full capacity. One of the main reasons is that the procedural details of the same mechanism that allows farmers to export soybeans and rapeseed they have grown without paying a 10% duty have not been finalized.
The main thing is the procedure
The Cabinet of Ministers approved the procedure for confirming by agricultural producers and agricultural cooperatives that they have grown the products intended for export on October 3, and the relevant resolution came into force on the same day. It was determined that the document confirming the right of agricultural producers to export soybeans and rapeseed grown by them without paying customs duties will be an expert opinion on the origin of products issued by the Ukrainian Chamber of Commerce and Industry (CCI) or its regional branches. In order to obtain the CCI’s opinion, farmers must register their sown areas and harvest in the State Agrarian Register, create an electronic account on the Chamber’s website, upload the necessary documents and submit an application. The review should take one to two days. But as it turns out, not everything has been agreed upon in high places.
Oleksiy Sobolev, Minister of Economy, Environment and Agriculture, spoke about the uncoordinated procedural details in his speech in parliament at the end of last week.
“Together with the Chamber of Commerce and Industry and the State Customs Service, we are now finalizing a detailed list of documents required for agricultural producers to receive this confirmation. We are also working on an algorithm for submitting conclusions to the CCI and the State Customs Service,” the official said.
“But the result of these several weeks of government approvals and developments is already receiving critical feedback from the agricultural community. For example, Bohdan Kostetskyi, operating partner of Barva Invest, calls the proposed procedure “bad, old, lame.” However, he still admits that “it is better to have such a procedure than no procedure at all.”
Oleksandra Buyukli, executive director of the First Ukrainian Agricultural Cooperative, points out the complexity and illogic of the mechanism proposed by the government.
“The mechanism for confirming the origin of goods is very ill-conceived. It has been complicated and made illogical. For example, in order to get a certificate from the Chamber of Commerce and Industry, you need to provide a preliminary customs declaration, and it cannot be opened without paying the duty. Therefore, exports have not actually started. And all of this means additional time spent on bureaucracy and additional costs, since, for example, the same certificate is not free: its cost ranges from UAH 13,000 to 20,000, depending on the region and the speed of its issuance. Prior to these innovations, almost all traders required farmers to submit a large package of documents to prove the origin of their goods. That’s why we now have double work and a new authority that issues certificates,” the expert says.
According to Oleksandr Buyukli, the relevant ministry promises to finalize this mechanism, but it all takes time, and accordingly, some farmers will simply have to pay duties and export. And then, through the courts, they will try to return these duties.
Although the Ministry of Economy, Environment and Agriculture promises to resolve this issue. Speaking in parliament, the head of the Ministry, Oleksiy Sobolev, said as much.
“We have submitted amendments to the State Budget for 2026 regarding the possibility of refunding to agricultural producers the duty paid on the export of rapeseed and soybeans in September 2025 – before the government decides on the procedure for exemption. Thus, if we adopt all of this, we will have uniform rules from the moment the law is applied,” the Minister said.
According to him, the adoption of such amendments is a matter of the coming weeks.
Meanwhile, exports are stalled
Exports are not actually unblocked, as the procedure for producers to confirm their own soybeans and rapeseed and, accordingly, exempt from paying the duty is not properly prescribed. This is how Oleksandr Buyukli, Executive Director of the First Ukrainian Agricultural Cooperative, characterizes the situation.
“In October, we exported 8.55 thousand tons of rapeseed and 70.85 thousand tons of soybeans. So far, we do not see a strong growth in exports, especially for rapeseed, as producers were not in a hurry to sell it. As for soybeans, there are forward agreements and a share of farmers fulfill their obligations, and therefore the export figure is higher than in the situation with rapeseed,” the expert states.
According to Mr. Buyukli, there are no significant changes in prices. He recalls that the main dynamics was after September 4, when export duties came into force and some agricultural producers started selling soybeans and rapeseed on the domestic market, which led to a decrease in prices. But after a few days, everything stopped. What is the situation now?” explains Oleksandra Buyukli.
“Rapeseed prices are rising because the supply on the market is very weak. Some processors do not have enough coverage for raw materials and they have returned to high levels of 24000-24400 UAH/t CPT plant. Traders are also ready to buy rapeseed, but with the condition that the seller pays the duty himself. As for soybeans, the price decreased in September and remained unchanged for almost a month. But weather conditions are making their own adjustments. The weather complicates the harvesting campaign, restrains the supply on the market, and this affects prices,” the expert notes.
Meanwhile, the Ukroliyaprom association shared some good news for processors. As it turns out, in September 2025, under the conditions of the export duty on rapeseed, its processing at domestic enterprises increased to a record monthly volume of 250 thousand tons.
Author – Sergey Vasilevich
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