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Russia: Rapeseed Export Ban May Be Extended Until March 2024

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It was proposed to extend the ban on the export of Russian Rapeseed for the first half of the 2023/24 season. If the proposal is approved, Rapeseed will not be exported until February 29, 2024, except through one border crossing point.

The draft resolution extending the ban on the export of Rapeseed was posted on the website to prepare regulatory legal acts. This is not the first time the Ministry of Agriculture has extended the ban on Rapeseed exports. The ban was initially introduced in April 2022 until August 31, 2022. 

The ban on the export of Rapeseed made it possible to increase the export of finished products – Rapeseed oil and meal. Thus, according to OleoScope, in the first half of 2023, Russia exported about 555 thousand tons of Rapeseed, mainly to Belarus and China, and more than 1 million tons of finished products (839 thousand tons of oil and 421 thousand tons of meal). According to AgFlow data, Russia exported 8,438 tons of Rapeseeds to Turkey in Apr – May 2023.

At the same time, the Russian Agriculture Ministry proposes not to extend the ban on the export of Rapeseed through the Zabaikalsk checkpoint. “Taking into account the lack of capacity for processing Rapeseed in the Far Eastern Federal District, the geographical features of this region, and existing logistical difficulties, it is proposed to establish a temporary ban on the export of Rapeseed from the Russian Federation except the checkpoint across the state border of the Russian Federation Zabaikalsk.

This measure will allow Transbaikal agricultural producers to preserve the profitability of production, find markets for Rapeseed raw materials, and avoid overstocking the Rapeseed market in the Trans-Baikal Territory and reducing the production of these products. 

In 2021, 14.9 thousand tons of Rapeseed were produced in the Trans-Baikal Territory, 19.8% less than in 2020. According to Rosstat, in 2021, Rapeseed production in farms of all categories in Russia amounted to 2.79 million tons (2.57 million tons in 2020), including in the Siberian Federal District – 1.19 million tons (0.90 million tons). The Ministry of Agriculture plans to increase Rapeseed production to 3.6 million tons by 2025.

According to Rosstat, more than 4.5 million tons of Rapeseed were harvested in 2022. Experts noted that this was a record harvest for Russia; processing capacities were loaded due to the ban on the export of raw materials – thus, the volume of Rapeseed oil production increased by more than a third. At the same time, Rapeseed oil is traditionally little-used within the country, which means that this product’s export will only grow.

The processing capacity of Rapeseed oilseeds is designed to process about 3 million tons of products. At the same time, the volume of Rapeseed oil production in 2021 amounted to 684.5 thousand tons. The use of existing capacities justifies the need to extend the ban on the export of Rapeseed, which has been in force since April 1, 2022.

Soybean Export Duty Extension in Russia

The Ministry also proposes to extend the Soybean export duty for another two years until August 31, 2024. The Ministry of Agriculture justifies the extension of the export duty on Soybeans by the fact that now the domestic market demand for Soybean meal cannot be fully satisfied by domestic producers of Soybeans.

As per to Rosstat, in 2021, Soybean production in Russia amounted to 4.76 million tons (4.31 million tons in 2021), including 1.67 million tons (1.45 million tons) in the Far Eastern Federal District, out of which more than 68% (1 million 138.6 thousand tons) falls on the Amur Region.

The Ministry of Agriculture plans to increase the production of Soybeans to 7.5 million tons by the end of 2025, including in the Far Eastern Federal District – up to 3.3 million tons. Promoting the processing of Soybeans is necessary to provide the livestock industry with high-protein feed.

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