Russia is targeting Ukraine’s fat-and-oil industry: a threat to exports and the budget
6 January 21:35
Russian attacks on Ukrainian oil and fat companies are systemic and aimed at destroying the export-oriented industry, which accounts for a significant share of the country’s foreign exchange earnings. This was stated by the Ukroliyaprom association, Latifundist.com reports , "Komersant Ukrainian".
What is known
According to the association, Russian attacks in recent days have affected key enterprises in the industry:
- bunge plant in Dnipro, which produces products under the Oleina brand;
- allseeds terminal in Pivdennyi port;
- Ilyichevsk oil and fat factory Kernel in Chornomorsk.
Stepan Kapshuk, CEO of Ukroliyaprom, emphasized that the attacks were aimed at “the budget-forming and export-oriented industry” as oil and meals account for more than 15% of foreign exchange earnings and about 20% of Ukraine’s commodity exports.
Consequences of the attacks
- Bunge’s production facilities in Dnipro were damaged, but there were no injuries; the company is working with local authorities to resume operations.
- After the attack in Dnipro, about 300 tons of oil leaked onto the roads, which hampered traffic in the city for 2-3 days.
- In Chornomorsk, a fire broke out at a vegetable oil tank and caused product leakage.
- At Pivdennyi port, during the massive attacks, vegetable oil leaked into the water area, which temporarily restricted the port’s operations.
Companies’ response
Bunge reports assessing the damage and prioritizing employee safety. The company has already started measures to restore production. Kernel is also monitoring the situation at its plant and is addressing the consequences of the leak.
Implications for the economy
Experts warn that further strikes could have a significant impact on Ukraine’s state budget revenues and foreign exchange earnings. The oil and fat industry is one of the most important for exports, and its destruction creates additional economic risks for the country.
Companies in the industry continue to assess losses and resume operations, while the government and industry associations are seeking support from international partners to restore production capacity and ensure the safety of export-oriented companies.
