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Ukraine’s Kernel Decides to Halt Oilseed Processing After Russian Attacks

The company said it would pause seed purchases while continuing warehouse shipments and honoring existing commitments.

Updated 2 min read
Sunflower oil extraction equipment stands idle at a processing plant in Ukraine (AI-generated image / EconoTimes)
Sunflower oil extraction equipment stands idle at a processing plant in Ukraine (AI-generated image / EconoTimes)

Kernel Holding S.A., a Ukrainian sunflower oil producer, said it decided Nov. 12 to pause processing across its oilseed network after Russian attacks damaged company facilities, citing employee safety.

In Current Report 34/2026, Kernel linked the decision to worsening security and intensified Russian attacks on Ukraine’s agricultural sector, including its own assets. The company separately said drones had hit production sites in the preceding days, damaging buildings, equipment and storage tanks.

Kernel said workers were safe after the facilities completed shutdown procedures. It said oil extraction equipment runs continuously, creating a fire danger if a strike hits while processing is underway. The company said protecting workers prompted the pause.

Kernel also stopped buying seeds. It said shipments from warehouse inventory would continue and that earlier commitments to Ukrainian farmers and business partners remained in force.

The decision affects a company with a reported presence in the global sunflower oil trade. In its annual report for the fiscal year ended June 30, 2026, Kernel said it accounted for about 6% of global sunflower oil production and 10% of global sunflower oil exports. It processed 3.2 million tons of oilseeds that year. These figures are company-reported.

Kernel’s FY2026 annual report also recorded Russian attacks on port assets and disruption to export routes earlier in fiscal 2027.

The current report did not identify the plants, estimate damage or affected production, or give a restart date.

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