Kernel Has Shut Down All Its Oil Mills: What Will Happen to the Oil Market Now?

Ukraine’s largest sunflower oil producer suspended operations at all eight plants after Russian attacks. It stopped purchasing seeds but continues shipping from warehouses.
иллюстративное фото  / depositphotos
иллюстративное фото / depositphotos

The Ukrainian agricultural holding Kernel has completely halted operations at all of its oil extraction plants following Russian strikes on food industry facilities. As a result of the attacks, the company’s production buildings, equipment, and storage tanks were damaged. At the same time, the holding has suspended the purchase of sunflower seeds for processing. Kernel’s press service reported this, as reported by Dengi.ua, citing Kernel.

Why Kernel Shut Down All Its Plants

The holding company’s management made the decision to completely halt production due to the threat of large-scale fires and the danger to employees.

As the company explained, sunflower processing is a continuous technological process with a high level of fire risk. If a drone enters operating equipment or production facilities, it could cause a fire and lead to serious consequences.

In recent days, Russian drones have deliberately targeted the production sites of Ukrainian processing plants, including Kernel facilities. The strikes resulted in damage to buildings, equipment, and industrial storage tanks.

In light of this, the company decided not to limit itself to shutting down individual damaged facilities, but to completely suspend operations at all oil extraction plants.

The plants have already carried out the necessary procedures to safely shut down their production processes. The holding company emphasized that employees are in safe conditions.

How Many Plants Has the Agricultural Holding Shut Down?

Kernel comprises eight oil extraction plants. Their combined capacity allows for the processing of up to 3.5 million metric tons of sunflower seeds annually.

The company’s production facilities are located in the Poltava, Khmelnytskyi, Mykolaiv, Odesa, and Kirovohrad regions. Two other plants in the Kharkiv region—in Vovchansk and Prykolotne—have been out of operation since 2022 due to the war.

Kernel is one of the largest producers and exporters of sunflower oil not only in Ukraine but also worldwide. Prior to the full-scale Russian invasion, the company accounted for about 9% of global production of this product and approximately 12% of global exports.



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