Kernel suspends operations at all oil extraction plants after Russian attacks

Ukrainian sunflower oil producer Kernel has temporarily halted operations at all its oil extraction facilities following a series of Russian attacks on food industry sites, the company announced on Thursday. Russian drones have been intentionally targeting food processing facilities in Ukraine, including Kernel's own assets, causing damage to production buildings, equipment, and storage tanks, according to the statement.

Given the continuous nature of oil extraction, which involves high fire risks, the company has initiated safety shutdown procedures at all plants to prevent potential fires and protect employees. Employees are currently in safe conditions. In addition to suspending operations, Kernel has also paused sunflower seed purchases. Despite the halt in processing, the company maintains operational and financial stability, continues shipping existing stock from warehouses, and is fulfilling all previous commitments to Ukrainian farmers and business partners.

Kernel's oil extraction capacity stands at 3.5 million tonnes annually, spread across eight plants in Poltava, Khmelnytsky, Mykolaiv, Odesa, and Kirovohrad regions. Two plants in the Kharkiv region, Vovchansk and Prykolotne, have been idle since 2022 due to the ongoing conflict. Prior to Russia's full-scale invasion, Kernel was the world's largest sunflower oil producer, accounting for around 9% of global output and exports, with a share of approximately 12%.

The company is also a major producer and seller of bottled sunflower oil in Ukraine and is involved in crop production and sales. During fiscal year 2026 (July 2025-June 2026), Kernel's consolidated net profit rose by 35% to $322 million, while consolidated revenue increased by 7% to $4.404 billion.