Ukrainian farmers will file lawsuits for refund of export duty on rapeseed

Farmers who agreed to pay the export duty on rapeseed are simultaneously collecting documents for claims for its reimbursement.

This is reported by Spike Brokers.

According to analysts, the sales liquidity from farmers has completely disappeared. Factories are keeping prices 10% below export parity, trying to profit from the lack of a mechanism for exempting farmers from export duty.

In the export direction, a large part of farmers have agreed to pay the duty. However, in parallel, they are collecting documents for future claims for its reimbursement.

There are also farmers who have refused to pay the export duty – this blocks logistics in ports and at the border. In general, farmers are waiting until the conditions and a clear mechanism for exemption from duties become clear.

In particular, in an interview with Latifundist, the commercial director of TAS Agro, Anton Zhemerdeev, said that after the export duties on soybeans and rapeseed came into force, the company only fulfilled the forward contracts it had before. No new agreements were concluded, because they were sure that there would be no duties for producers.

Zhemerdeev commented: “We were not mistaken in logic, but we were mistaken in how these amendments were implemented in practice.” According to him, to date the company has already paid UAH 18.4 million in duties — this is money from turnover and investments.

The company will file lawsuits and demand compensation at all levels, including in court. USM previously reported that the European Business Association is calling for the abolition of the export duty on soybeans and rapeseed.