Ukraine is preparing for significant changes in its agricultural export policy in light of the expected end of the “trade visa-free regime” with the European Union after June 5, 2025. According to Minister of Agrarian Policy Vitaliy Koval, the government plans to reduce raw material exports and focus on developing domestic processing to minimize economic losses due to new trade restrictions.
This is reported by Finway
Reorientation Towards Domestic Processing
Vitaliy Koval emphasized that currently, the export of Ukrainian agricultural products to the EU is tax-free. However, producers of vegetable oils have already urged the government to limit the export of oilseeds such as soybeans and rapeseed to significantly increase domestic processing volumes. This will allow for the export of finished products—sunflower, soybean, and rapeseed oil—which have higher added value and yield greater profits than raw material exports.
The minister noted that currently, Ukrainian oilseed processing enterprises are operating at only 65% capacity. The Ministry of Agrarian Policy is analyzing all possibilities to maximize the use of the country’s production capacities to create additional value and develop processed products.
Potential of the Ukrainian Agricultural Sector
Traditionally, Ukraine exports up to 50% of its soybean harvest and a significant portion of rapeseed in raw form. Changing the export strategy could provide the country with more stable income and promote the development of the agro-processing industry, which is an important factor for the economy under the new trading conditions with the EU.
“Ukraine needs to do more to take advantage of its own raw materials.”