The largest Moldovan oil producer stops work due to a lack of Ukrainian seeds

The largest oil producer in Moldova, "Avangard" company, announced the temporary suspension of production due to the lack of Ukrainian sunflower seeds. This unexpected situation arose due to restrictions on Ukrainian seed exports, which affects Moldova's industry, which is heavily dependent on imports. The "Avangard" company said that this will lead to a decrease in oil production and possibly to an increase in prices for oil for domestic use.

The company, which is part of the "Avangard" group, is one of the largest oil producers in Moldova and produces about 70% of the country's oil. Ukraine, for its part, is one of the largest producers of sunflower seeds in the world, and its exports play an important role in meeting the needs of European countries for this product. Restrictions on exports from Ukraine may lead to difficulties for importing countries such as Moldova.

According to the State Statistics Service, by the end of 2023, Moldova imported about 250,000 tons of sunflower seeds from Ukraine. This is about 85% of the total import of sunflower seeds. Thus, the stoppage of exports from Ukraine can seriously affect the production of oil in Moldova and lead to a shortage of the product on the domestic market.

Ukraine has set restrictions on the export of sunflower seeds until September 30, 2024 in order to ensure the country's domestic market and stabilize product prices. This decision was a response to the rise in food prices in the country and is aimed at protecting the interests of domestic producers and consumers. However, such restrictions may have a negative impact on exporting countries such as Moldova, which faces difficulties due to the lack of necessary seeds for oil production.

Ukraine and Moldova plan to hold consultations to resolve this situation and possible extension of export restrictions. Oil producers in Moldova are hoping for a quick solution to the problem to avoid serious losses in production and the market.