Ukrainian soybean and rapeseed processing enterprises are currently operating at only 65% of their production capacity, resulting in significant revenue losses for the state budget. The Economic Committee of the Verkhovna Rada calculated that if these capacities were fully utilized, the country could gain an additional ₴7.3 billion, and foreign currency inflows would increase by $238 million. To stimulate the development of the processing industry, it was proposed to implement a 10% export duty on traders’ operations with rapeseed and soybeans. At the same time, it was planned to maintain a duty-free regime for farmers exporting their own harvests.
This is reported by Finway
Objective of the Initiative and Expected Results
The main idea behind the introduction of the export duty was to motivate large traders to refrain from exporting raw materials and instead invest in building processing plants in Ukraine. This practice has already yielded positive results in the sunflower and roundwood markets, where similar steps have contributed to attracting significant industrial investments. According to forecasts, the introduction of duties on the export of raw products would allow for a 300% increase in rapeseed oil exports and a 200% increase in meal exports. For soybeans, this figure could rise by 50% for oil and by 100% for meal.
Business Opposed, Parliament Did Not Support the Initiative
“At the same time, the business community ACC in Ukraine sees risks in the introduction of such duties, and the EBA has also expressed concerns. As a result, the Verkhovna Rada did not support the amendment to Bill No. 13134 on June 18, which aimed to introduce a 10% export duty.”
Business associations, including the American Chamber of Commerce and the European Business Association, expressed concerns regarding the possible introduction of duties. They believe that such steps could create risks for Ukrainian exporters and restrict access to foreign markets. Consequently, the Verkhovna Rada did not support the relevant amendment to Bill No. 13134, which proposed the introduction of a 10% export duty on soybeans and rapeseed.