Finance
Surging Fuel, Fertiliser Prices Do Not Threaten Ukraine's Spring Crop Sowing, Official Says
Published by Global Banking & Finance Review®
Posted on March 27, 2026
3 min readLast updated: March 27, 2026
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Ukraine’s deputy economy minister says soaring fuel and fertilizer costs—driven by the Iran war’s spike in global energy prices—pose a financial burden for farmers but are not expected to derail spring sowing across an estimated 16 million hectares of crops.
Ukraine’s Spring Crop Sowing Unaffected by High Fuel and Fertiliser Prices
By Pavel Polityuk
Ukraine’s Agricultural Outlook Amid Rising Input Costs
KYIV, March 27 (Reuters) - A sharp rise in fuel and fertilizer prices due to the Iran war are not expected to disrupt Ukraine's spring sowing of grains and other crops, its deputy economy minister said on Friday.
Ukraine is a major global oilseed and grain producer, which generated $22 billion in export revenue in 2025, but its crop yields rely heavily on fertiliser use.
Challenges Facing Ukrainian Farmers
"Among the key challenges are a significant rise in fuel costs, as well as a 30–35% increase in the price of fertilisers driven by global market factors," the ministry quoted Taras Vysotskiy as saying.
"This places an additional financial burden on farmers, but does not jeopardise the campaign," he added.
Impact of High Prices on Inputs
HIGH PRICES
The war in Iran has pushed gas and oil prices up sharply, driving up the cost of fertilisers and fuel made from them.
Ukraine does not buy fuel and fertilizers directly from the Gulf states, but the war has driven up prices globally, including those charged by producers in the Mediterranean and Black Sea regions, Ukraine's main suppliers.
Market Reactions and Price Increases
Kostyantyn Kinzhalov, an analyst at Kyiv-based Barva Invest, told an online traders' meeting that domestic prices of urea - a widely used fertiliser during sowing - had jumped 65% since the start of the year and 43% since late February.
Diesel fuel, the main type used by farmers, has also become more expensive and, according to one fuel trader quoted by Enkorr consultancy, its wholesale prices had jumped by nearly 50% in less than a month because of the Middle East war.
Progress and Outlook for Spring Sowing
ONLY BEGINNING OF SOWING
Vysotskiy said only the first 200,000 hectares of spring crops had been sown so far, while the total sowing area could reach 16 million hectares.
The ministry earlier this month said the area could include 5 million hectares of sunflower, 6 million hectares of various grains, 2 million hectares of soy and some acreage of other crops.
Weather and Crop Replanting Concerns
Analysts and weather forecasters said earlier this year that the extreme cold last winter may have damaged up to 10% of winter grain and oilseed crops, which will need to be replanted in the spring.
Ministerial Statements on Sowing Campaign
Vysotskiy, however, said that "as of today, we are not seeing any force majeure factors that could significantly affect the pace of the work."
Vysotskiy told Reuters on Thursday that a sharp rise in fertiliser prices was unlikely to prompt big changes in Ukraine's crop-planting plans this year, but could push farmers to cut back on fertiliser-intensive corn in 2027.
(Reporting by Pavel Polityuk; Editing by Susan Fenton)
Key Takeaways
- •Despite 30–35% global fertilizer price hikes and nearly 50% surge in diesel prices due to the Iran war, Ukraine’s spring sowing is proceeding on schedule, with just 200,000 ha sown so far out of a projected 16 million ha total.
- •Ukraine’s agricultural export revenue reached approximately $22.7 billion in 2025, underscoring the sector’s resilience even amid cost pressures and prior winter crop setbacks.
- •Further increases in fertilizer and energy costs—forecast at 7–11% for the 2026/27 season—could strain producer margins, potentially prompting shifts toward less fertilizer-intensive crops in 2027.
Frequently Asked Questions about Surging fuel, fertiliser prices do not threaten Ukraine's spring crop sowing, official says
1How have fuel and fertilizer prices in Ukraine changed recently?
Fuel and fertilizer prices in Ukraine have risen sharply due to the Iran war, with fertiliser prices up 30–35% and domestic urea prices up 65% since the start of the year.
2Will rising fuel and fertilizer costs affect Ukraine's spring crop sowing?
Officials say the cost increases pose financial challenges but will not threaten or disrupt the spring sowing campaign.
3How much area does Ukraine plan to sow with spring crops in 2025?
Ukraine could sow up to 16 million hectares with spring crops, including 5 million hectares of sunflower and 6 million hectares of various grains.
4Has the war in Iran affected Ukraine's fertilizer and fuel suppliers directly?
No, Ukraine does not buy these directly from the Gulf, but global price rises are impacting its main suppliers in the Mediterranean and Black Sea regions.
5Could future planting plans be changed due to high fertilizer prices?
A sharp rise in fertilizer prices may lead farmers to reduce fertiliser-intensive corn planting by 2027.