EU’s Sunflower-Oil Supply May Dry Up by April on Ukraine War

European grocery stores could run out of a key cooking oil as soon as next month as the war in Ukraine halts trade from the crucial supplier.

Russia’s invasion has closed Ukraine’s ports, bringing exports of crops such as sunflower oil to a standstill. The country accounts for half of all shipments of the vegetable oil, and processing plants have also been halted, with Kernel Holding SA saying hundreds of its workers have joined the military.

“Beyond that period, it is likely that lack of availability of crude sunflower-seed oil and limited alternatives will lead to a shortfall,” the Brussels-based group said. “This will be felt up to the consumer level.”

The warning shows just how quickly the war is affecting global trade, especially for agricultural commodities, and threatening cost increases for consumers. Benchmark prices of wheat, another of Ukraine’s major exports, soared an unprecedented 40% this week, while other vegetable oils like soy and palm hit record highs.

After Ukraine, Russia is the next biggest sunflower-oil shipper. Trade with the country has also been stifled as nations impose sweeping restrictions and sanctions in response to the invasion and vessels face dangers transiting the Black Sea.

Tags: Ukraine, sunflower oil, EU