- Policy Extension: Ukraine prolonged the export duty exemption application deadline for rapeseed and soybean producers to February 1, 2026.
- Stricter Oversight: Monthly monitoring now compares export volumes with State Agricultural Registry data, targeting only actual producers.
- Revenue Allocation: Tariff proceeds will fund frontline agricultural regions, processing, greenhouses, horticulture, and war risk insurance.
- Market Impact: Neutral to slightly bearish for rapeseeds as producer support continues, but tighter compliance could curb total export volumes.
Ukraine Extends Export Duty Exemption Window
The Cabinet of Ministers of Ukraine has extended the deadline for submitting applications for export duty exemptions on rapeseeds and soybeans to February 1, 2026. The move follows the introduction of the new Procedure for Monitoring Export Volume Compliance with State Registration Data (SAR), which entered into force on December 10, 2025 and caused some producers to miss the original January 1, 2026 cutoff.
New Monthly Monitoring and Compliance Rules
Under the updated framework, authorities will perform monthly checks comparing actual exported volumes of rapeseeds and soybeans against data recorded in the State Agricultural Registry. If discrepancies are identified, the Chamber of Commerce and Industry of Ukraine will revoke the exporter’s exemption rights.
The exemptions are explicitly limited to direct agricultural producers that grow their own crops, excluding intermediaries and traders who do not have matching SAR records. This is designed to ensure that the benefits of duty-free exports accrue to genuine producers rather than middlemen.
Fiscal Flows and Support for Frontline Agriculture
According to Deputy Minister Taras Vysotsky, the policy seeks to preserve farm incomes while channeling tariff revenues into a dedicated state budget fund. Allocations from this fund will prioritize frontline agricultural regions, development of processing infrastructure, greenhouse projects, horticulture, and war risk insurance mechanisms for the sector.
Market Implications for Rapeseed and Soybean Exports
The extension of the exemption application window is neutral to slightly bearish for rapeseeds in the near term, as it helps maintain export competitiveness for qualifying Ukrainian producers. However, the tighter monitoring and exclusion of intermediaries could trim overall export volumes if a significant share of previous duty-free shipments originated from non-producer entities.
Traders should closely track application volumes ahead of the February 1, 2026 deadline to assess the true producer base eligible for exemptions. This will be a key driver of Ukraine’s price competitiveness in Black Sea rapeseed markets through the 2026 marketing year, particularly if the effective exportable surplus under the exemption regime declines.
Source: Market Data
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