Russia’s invasion of Ukraine two months ago has significantly affected the global vegetable oil supplies, its minister, Zuraida Kamaruddin, said.

In addition, the uncertainty over Black Sea exports had resulted in higher vegetable and edible oil prices, she said.

This could further tighten the global oil seed and vegetable oil supplies and prolong the upcycle in vegetable oil prices.

Zuraida said the ministry believes the Black Sea tension will benefit Malaysian palm oil exports as many European countries with high dependency on sunflower oil have now shifted their demand to palm oil.

“This is why I believe now is a timely opportunity for palm oil to regain its confidence from European buyers given the publicity the commodity received in the past,” she said in a statement.

She said that coupled with Indonesia’s decision to ban the export of raw materials for cooking oil, including crude and refined palm oil, global vegetable oil prices are likely to remain high in the first half of 2022.

“Under my leadership, the ministry will not want to waste (the opportunities presented by the) crisis.”

She said she has directed the Malaysian Palm Oil Council and the Malaysian Palm Oil Board and others to undertake aggressive efforts and campaigns to fill the global market gaps in the interim.