Kernel Holding, Ukraine’s largest producer and exporter of sunflower oil, announced on Nov. 12 that it had suspended operations at all eight of its extraction plants due to the impact of Russian strikes. The company confirmed that all workers are currently safe, citing employee safety as the primary driver for the shutdown. It also halted all seed purchases immediately following the announcement. Prior to Russia’s full-scale invasion, the firm accounted for about 9% of global sunflower oil production and was the world’s top exporter. Its annual processing capacity reaches up to 3.5 million metric tons of sunflower seeds.
Strategic Targeting of Food Security
A source in Ukraine’s military intelligence (HUR) told the Kyiv Independent two days prior that Russia is preparing strikes against food industry facilities across the country. These attacks aim to destabilize food security, inflict economic damage, and increase Russia’s share of global agriculture exports. The HUR source explicitly listed sunflower oil production facilities among planned targets, along with other vegetable oil plants. Russia also plans to hit grain storage sites, dairy factories, meat processing plants, and poultry farms, according to the same intelligence report. This systematic targeting reveals a clear strategy to cripple Ukrainian agricultural output while expanding Moscow’s dominance in global markets.
The night before Kernel’s announcement, Ukraine’s Air Force reported that Russia launched Iskander-M and S-400 ballistic missiles, Zircon anti-ship missiles, and 123 long-range attack drones across the country. Eight oblasts reported damage from this overnight strike, which primarily targeted energy and transportation infrastructure. However, the food industry is increasingly in Russia’s crosshairs. "Over the past few days, Russian drones have deliberately targeted production sites at Ukrainian processing facilities, including Kernel’s assets," the company stated in a press release. The strikes caused damage to production buildings, equipment, and storage tanks. Extracting sunflower oil poses a high risk of fire, meaning a drone strike can cause large-scale fires and endanger personnel. Despite the shut-down and physical damage, Kernel said it "maintains full operational and financial stability." The company continues to ship inventory from its warehouses and fulfill prior agreements with Ukrainian farmers.
