24 May 2022 09:14

Turkey expects imports of Russian oil and fat products to stay high in 2022 - Agroexport

MOSCOW. May 24 (Interfax) - Representatives of Turkish companies that purchase oil and fat products in Russia expect supplies of such products to remain at a high level this year, the Russian Agriculture Ministry's Agroexport Center said.

"Representatives of Turkish companies, most of which already work with Russia, are confident that the quantity of supplies of oil and fat products from our country will be very high this year," Agroexport said after a roundtable held as part of a business mission of Russian exporters to Turkey.

Turkey consumes an estimated 1.5 million tonnes of sunflower oil per year, about 900,000 tonnes of which is produced in the country. Imports total about 1 million tonnes, of which about 500,000 tonnes are refined, packaged and exported to other countries, AVES sales director Abdullah Zeren was reported as saying in the press release.

"The current situation will obviously increase the trade turnover between Russia and Turkey, particularly in the sector of oil and fat products," he said. Zeren proposed considering legal instruments for independent resolution of disputes and problems between companies in the area of pricing, delivery conditions, tonnage guarantees and so on as one measure that could help develop relations.

Russian Deputy Agriculture Minister Sergei Levin said at the event that Russia increased sunflower oil exports to Turkey by 150% year-on-year in 2021 and accounts for about 90% of Turkey's imports of such oil. "But despite this we believe that the potential and possibilities are far from exhausted," Levin said.

Russia nearly quadrupled production of key oil crops in the period from 2010 through 2021, and production is expected to grow by another 30-40% by 2030, the commercial director of Yug Rusi Group, Ilya Ilyushin said. He proposed to move away from spot contracts in the current environment in favor of building long-term relations with Turkish partners.

Exporters of oil and fat products also said they hope that mutual settlements with Turkey in national currencies will be introduced very soon.