Export Duties on Soybeans and Rapeseed in Ukraine
From 1 October 2025, Ukraine will begin to apply an export duty of 10% on soybeans and rapeseed introduced by the Law of Ukraine "On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine in Connection with the Adoption of the Law of Ukraine "On Integrated Prevention and Control of Industrial Pollution” and in order to Improve Certain Provisions of Tax Legislation” No. 4536-IX dated 16 July 2025 (the "Law”).
Basic provisions
In accordance with the Law, Ukraine introduces a duty of 10% on the export of soybeans and rapeseed by amending the Law of Ukraine "On Export Duty Rates on Seeds of Certain Types of Oilseeds”. The Law enters into force on 1 October 2025.
The scope of the Law does not apply to all goods, in particular, agricultural producers who independently export their own products, as well as cooperatives representing the interests of their members, are exempt from paying duties.
In addition, the Law provides for the creation of the State Fund for Support of Agricultural Producers in the future, the funds of which will be formed at the expense of customs revenues from export duties.
The arguments in favour of the introduction of the duty are based on the expected revival of the domestic processing industry, a decrease in dependence on the export of raw materials, and an increase in foreign exchange earnings by USD 240 million annually. Production capacities remain underutilised by over one-third, so the duty should stimulate their more efficient use.[1]
Compliance with Ukraine’s international legal obligations
The law caused an ambiguous reaction in society and among specialists. In particular, a number of its provisions contradict Ukraine’s international legal obligations.
When joining the WTO, Ukraine made two key commitments. First, it agreed not to apply mandatory minimum export prices. Second, it committed to reduce export duties to 10% on certain products: oilseeds (sunflower, camelina, flax), live livestock, animal skins, and scrap metals (ferrous and non-ferrous). Therefore, under the WTO rule Ukraine it is allowed to apply export duties on soybeans and rapeseed .
However, this is not the case with free trade agreements currently effective in Ukraine and pending ratification. Particularly, Article 31 of the EU-Ukraine Association Agreement prohibits parties from imposing or maintaining export duties, taxes, or equivalent measures on goods.
Several other trade agreements contain similar provisions. These include agreements with:
The United Kingdom (Article 31)
Canada (Articles 2.5 and 2.9)
EFTA States (Article 2.4)
Israel (Article 2.6)
Macedonia (Article 7)
Turkey (Article II.14, pending ratification)
UAE (Article 2.15, pending ratification)
All these agreements prohibit parties from imposing new export duties or increasing existing ones. They also require compliance with WTO obligations regarding export restrictions.
Conclusions
Thus, the introduction of a 10% export duty on soybeans and rapeseed from 1 October 2025 by Ukraine aims to stimulate the development of domestic processing and increase foreign exchange earnings. At the same time, despite the exceptions for individual producers, the provisions of the Law contradict Ukraine’s obligations under free trade agreements with the EU, the United Kingdom, Canada, EFTA, Israel, Macedonia, the Republic of Turkey and the UAE.