Ukraine is increasing rapeseed crops: the crop is actively used for biodiesel
30 August 08:45
Demand for biodiesel in Europe is encouraging Ukrainian farmers to increase the area under rapeseed, which is used for oil and fuel production. This was stated by Leonid Kozachenko, the head of the Ukrainian Agrarian Confederation, in an interview with the YouTube channel "Komersant Ukrainian".
“Speaking of biodiesel, the main crop we grow and supply to Europe is rapeseed. Rapeseed oil is now competitive, demand for it is growing, and prices are also rising,” explains Kozachenko.
In turn, rapeseed residues (rapeseed meal – ed.) are a valuable source of protein, fiber and nutrients for feeding farm animals, including cattle, pigs and poultry, the expert said.
“The integrated use of rapeseed makes it a profitable and interesting crop for our farmers,” Kozachenko added.
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Ukraine annually harvests millions of tons of rapeseed, and this crop is increasingly being positioned not only as an export commodity, but also as a key resource for biodiesel production. After the destruction of major oil refineries by Russian strikes, the country became critically dependent on fuel imports – in 2024, spending on fuel and energy products amounted to $8.9 billion, or 13% of total imports.
Biodiesel industry: potential and challenges
Despite significant harvests, biodiesel production in Ukraine remains at a starting level. It was only in 2025 that Ivan Kilgan’s farm received its first biodiesel production license, after going through a complex procedure of more than 300 documents. The plant produces up to 24 tons of biofuel per day, but has ambitious plans to increase its capacity to 250 tons.
Government policy and regulatory barriers
The idea of stimulating rapeseed processing in Ukraine by introducing export duties seems logical, but the industry faces numerous barriers: a complicated licensing procedure, lack of infrastructure, and high risks for investors. Production of biodiesel without a license is punishable by fines and confiscation of property.
Export prospects
Ukrainian producers are already preparing to export biofuels to the EU – the first test batch is undergoing an international audit. This opens up new opportunities for the agricultural sector, especially in the context of Europe’s decarbonization drive.
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