How will Azerbaijan cope with the shortage of vegetable oil?

Published 2022년 4월 5일

Tridge summary

Russia's ban on the export of sunflower and rapeseed oil and products from April 1 to August 31, 2022, due to Western sanctions and the unavailability of vegetable oil supplies from Ukraine, has led to a significant global price increase. This ban severely impacts countries like Azerbaijan, which relied heavily on Russia for imports. The article highlights the challenges Azerbaijan faces in finding alternative sources and the expectation of further price hikes. Additionally, it discusses the potential for artificial scarcity and higher prices due to consumer panic and behavior, noting that Russia and Ukraine were significant contributors to global vegetable oil production, around 58%.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The cessation of vegetable oil supplies from Ukraine and the restrictions that have come into force in Russia have already led to a significant increase in world prices for this type of oil. To regulate domestic prices and to protect the economy from Western sanctions, the Russian government imposed a ban on the export of a number of goods and raw materials. So, from April 1 to August 31, 2022, it is forbidden to export sunflower and rapeseed from the Russian Federation. Earlier, a decision was made to ban the export of sunflower oil and meal from the Russian Federation from April 15 to August 31 of this year. For Azerbaijan, which is largely dependent on the import of vegetable oil, as well as raw materials for its production, this is not the best news, especially against the backdrop of a steady rise in prices for all types of oils for more than two years. According to the State Statistics Committee, last year Azerbaijan imported 54,354 tons of sunflower oil worth $73.6 million, ...

Source: Oilworld