Kernel Halts All Oilseed Crushing Plants After Russian Drone Strikes

Kernel Holding SA, the world’s largest sunflower oil producer, has halted all its oilseed crushing plants after Russian drones struck its facilities – a sign that Moscow is widening its attacks on Ukraine’s food industry.The company wrote on Wednesday that over the past days Russian drones deliberately targeted processing plants across Ukraine, including Kernel’s assets, damaging production buildings, equipment and storage tanks. It also stopped all seed purchases, the company wrote in a press release sent to the media.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official.A Russian drone hit the territory of the Bandursky Oil Extraction Plant, owned by Kernel, in the Mykolaiv region’s Pervomaisk district at about 5:30 a.m. on Thursday, Nov. 12, the Economy and Environment Ministry wrote on its website on Friday, Nov. 13.The strike damaged three tanks of sunflower oil and completely destroyed a fourth. The protective embankment was also damaged so oil spilled onto adjacent land and contaminated more than 3,500 square meters (37,674 square feet) without threatening residential buildings.State environmental inspectors took soil samples, and as of noon on Friday Nov. 13, no oil had reached any water body, while crews continue pumping it out and building additional earth barriers, the ministry wrote.In the earlier press release, Kernel explained that “crushing is a continuous technological process with an elevated fire risk”, and that a hit on working equipment threatens a large-scale blaze and the lives of employees. The company wrote that it has carried out all shutdown safety protocols at every plant and that its workers are in safe conditions. Other Topics of Interest Rostov region’s governor confirmed an overnight attack but did not name the facilities struck. Despite the stoppage, Kernel wrote that it maintains full operational and financial stability. It continues to ship existing product stocks from its warehouses and will meet all commitments to Ukrainian farmers and partners in full.The company is the world’s largest producer and exporter of sunflower oil, accounting for 10% of global exports, and a leading grain exporter from Ukraine and major operator of agricultural logistics facilities. Operating since 1995, it exported 8 million tonnes (8.8 million tons) of agricultural products in the financial year 2025 according to its website, and its shares have traded on the Warsaw Stock Exchange since November 2007.Bloomberg previously reported that a soybean processing plant was damaged in a strike on Sunday, Nov. 8, as assets of other large agricultural companies were hit this month. A representative of Ukraine’s Military Intelligence (HUR), who asked not to be identified, told Bloomberg that Moscow is preparing to strike more silos, dairy plants and sunflower oil factories, along with meat and poultry producers.Grains, oilseeds and other agricultural products now account for more than half of Ukraine’s export revenue, according to Bloomberg. Ship traffic to Greater Odesa collapsed after Russian drone and missile attacks intensified, blocking the Black Sea for Ukraine’s grain exports completely. Ukraine has been exporting an average of 4-4.5 million tonnes (4.4-5 million tons) of agricultural products per month. About 90% of these exports went through seaports, according to Ukraine’s central bank, the National Bank of Ukraine (NBU).Kernel’s consolidated financial statement for 2025, as shown in stock exchange data compiled by the Warsaw Stock Exchange citing Notoria data, puts revenue from sales at $4.4 billion, with operating profit of $441 million and EBITDA of $558 million. Profit before tax reached $382 million, and net profit attributable to equity holders of the parent stood at $322 million. Total assets stood at $3.9 billion.Korolivsky Smak, a producer of sunflower oil, mayonnaise and sauces, also announced on Friday, Nov. 13, that it was halting production, ending all oilseed purchases and cutting staff, citing a critical electricity supply situation and the constant threat of missile and drone strikes, according to a Facebook post by its public relations and communications director, Hennadiy Tertychny.Delta Wilmar Ukraine has suspended all its production capacities in the Odesa region since Thursday, while Potoky in Odesa paused sunflower seed purchases and processing on Friday, both citing power outages and the security situation.On Tuesday, Nov. 10, Russian drones critically damaged the Nizhyn Fat and Oil Plant in the Chernihiv region, one of Ukraine’s oldest oil extraction facilities. Operating since 1896, the Nizhyn Fat and Oil Plant is one of Ukraine’s oldest yet most advanced oil extraction facilities, specializing in the full-cycle processing of oilseeds. Olena Hrazhdan is the Business Reporter at Kyiv Post, covering Ukraine’s markets, business, and economic policy. While she reports broadly on economic issues, her core focus is banking, finance, monetary and fiscal policy. Olena previously wrote for leading Ukrainian business media and became a Fellow of the International Monetary Fund’s Journalism Fellowship in 2024.