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Head of Ukroliyaprom urges Ukrzaliznytsia to make export of sunflower oil priority
KYIV. Aug 25 (Interfax-Ukraine) – Stepan Kapshuk, the head of the Ukroliyaprom association, called on Ukrzaliznytsia to increase the export of sunflower oil to at least 100 wagons per day instead of current 40 and contribute to the introduction of a priority for it, as well as for the export of agricultural cargo in general. He said it during an online meeting with participants industry on Thursday.
"Support the idea of prioritizing the delivery of agricultural goods at the level of at least the government. In 120 days [the term of the grain corridors], which are given to us for the export of goods by sea, we need to send as many goods as possible, especially oil," Kapshuk stressed.
According to him, the current rates of transportation of vegetable oil are insignificant, since for the period from August 1 to August 23, its export amounted to 71,000 tonnes, or about 1% of the total volume of transported goods (6.91 million tonnes).
At the same time, the export of sunflower oil is especially important for Ukraine, since it is much more profitable than the supply of corn and wheat. Foreign exchange earnings from the sale of oil produced in the country for the year exceeds the proceeds from the sale of the harvest of these two crops combined, Kapshuk explained.
According to him, the increase in sunflower oil exports will also support the operation of oil extraction plants, many of which are currently operating at minimum load or not working at all, and a downtime of an enterprise for one or two years can lead to a significant increase in the cost or even the impossibility of its subsequent launch.
In turn, Valeriy Tkachev, Director of the Department of Commercial Work at Ukrzaliznytsia, participating in the meeting, noted that Ukrzaliznytsia, as a carrier, does not have the authority to set priorities for some cargoes over others, but must serve all contracts concluded with it. In return, he offered Ukroliyaprom to increase transportation by ship through the grain corridor, since, according to him, even sending three tankers of 25,000 tonnes per month would almost double the current export volumes.
However, Kapshuk replied that since the beginning of the war, Ukrainian traders had not yet concluded contracts for the shipment of ships with a capacity of more than 12,000 tonnes.
