Kernel halts operations at all of its sunflower oil plants

Ukrainian agribusiness giant Kernel has ceased operations at all of its sunflower oil extraction plants across six regions of the country, reports wire service. The cessation came after a spate of Russian drone strikes on food industry enterprises, as cited in Kernel's official statement issued on November 12. These attacks targeted production sites, including Kernel's own assets, causing damage to buildings, equipment, and storage tanks.

The company highlighted the high fire risk inherent in oil extraction, noting that any strike on operating machinery poses an immediate threat to both workers and the facility. Consequently, Kernel decided to fully shut down all its plants to ensure safety. All safety protocols for the shutdown have been executed, and employees remain safely in their positions.

Despite the halt in processing, Kernel maintains full operational and financial stability, continuing to ship existing stock from its warehouses and fulfilling its commitments to Ukrainian farmers and partners. The company operates eight oil extraction plants in Ukraine. Two facilities in Kharkiv Oblast have not been operational since the onset of the war in 2022.

Reports suggest that Russia has been targeting food industry facilities in Ukraine, including those owned by both Ukrainian and foreign entities. Grain elevators, storage and processing warehouses, sunflower and other oil plants, dairies, meatpacking plants, poultry farms, and other entities across the sector are potential targets.

Kernel has previously been hit by Russian strikes, including a sunflower oil transshipment terminal in Odesa Oblast in July. Agribusiness holding Kernel is one of the world's largest producers and exporters of sunflower oil, the largest grain exporter in Ukraine, and a key player in the logistics and grain and oilseed sectors. The company is also a leading producer and seller of bottled oil under brands Stozhar, Shchedryi Dar, and Chumak.

For the fiscal year 2026 (July 2025 to June 2026), Kernel reported a 35% increase in net profit to $322 million and a 7% rise in revenue to $4.4 billion. Kernel's founder and beneficial owner is Andriy Verevskyi.