President suspends export quotas for sunflower oil

President Viktor Yushchenko issued a decree yesterday suspending the Cabinet of Minister’s March 22 decision to establish export quotas for sunflower oil in the amount of 300 ths mt until July 2008. According to Yushchenko, the Cabinet’s decision contradicts the Ukrainian Constitution, WTO accords and is not appropriate given current market conditions. The President said that according the Ministry of Agrarian Policy, the supply of sunflower oil on domestic market (750 ths mt until the end of the 2008 marketing year) strongly exceeds demand (160 ths mt). Anna Dudchenko: In our view this news will not have any significant impact on the two traded Ukrainian sunflower oil producers, Kernel Group (KER PW: N/R) and Creativ Group (CREA: N/R), as they said the quotas allocation didn’t affect their export plans.