In brief

• Kernel, Ukraine's largest sunflower oil producer, has halted all eight of its oil extraction plants after Russian drone strikes.
• The company has also suspended seed purchases and says it will keep shipping existing stock and meet its commitments.
• The Kropyvnytskyi plant is among the idled sites; the group's combined annual processing capacity is 3.5 million tonnes of sunflower seed.

Production halted across the group

Agroholding Kernel has stopped work at every oil extraction plant it operates, the company said on 12 November. Russian drones struck processing facilities across Ukraine over the preceding day, and Kernel's own sites were among those hit. The strikes damaged production buildings, equipment and storage tanks («Щедрий Дар», «Стожар» і «Чумак»: виробник популярної олії зупинив усі заводи – TSN) (Найбільший в Україні виробник олії Kernel зупинив роботу всіх заводів через удари РФ – Espreso) (Через атаки РФ найбільший виробник олії в Україні зупинив роботу всіх своїх заводів – UNIAN).

Why the company chose a full shutdown

Kernel said oil extraction is a continuous process with a heightened fire risk, so a hit on running equipment poses a direct threat of a large fire and endangers workers. For that reason, the company decided on a complete technological stop at all plants. According to the company, safety shutdown procedures have been carried out at all sites and staff are in safe conditions.

Network and locations

Kernel operates eight oil extraction plants with a combined annual seed processing capacity of 3.5 million tonnes. Its production sites are located in the Poltava, Khmelnytskyi, Mykolaiv, Odesa, Kirovohrad and Kharkiv regions. Two Kharkiv-region sites, in Vovchansk and Prykolotne, have not operated since 2022. The Kropyvnytskyi plant, in Kirovohrad region, is among those now idled (Через російські атаки «Кернел» зупинив роботу олійноекстракційних заводів, зокрема у Кропивницькому – Suspilne).

Supply and commitments

Kernel said it continues to ship existing product stocks from warehouses and will meet its obligations to Ukrainian farmers and partners in full. The company's branded sunflower oils include Shchedryi Dar, Stozhar and Chumak.

Context for the sector

Before the full-scale invasion, Kernel was the world's leading sunflower oil producer and exporter. The halt comes amid a wider wave of Russian attacks on Ukrainian industry, which has caused damage at several enterprises.