Interfax-Ukraine
19:41 07.10.2025

Ukraine's Kernel and Europe's oil refiner Orlen to deepen logistical and energy integration

2 min read

Kernel, one of Ukraine's largest agricultural holdings, and Orlen, one of Europe's leading oil refining, gas production, and energy companies, have signed a memorandum of strategic cooperation, the agriholding's press service reported on Facebook.

"For several years now, we have been successfully cooperating with Orlen in the supply of mineral fertilizers and fuel to ensure the uninterrupted operation of our agricultural enterprises. The signing of the memorandum is a logical step in developing this partnership – it opens new horizons for deepening the logistical and energy integration of our businesses," Kernel said.

The company believes that the new cooperation framework will help increase the predictability and stability of procurement processes, balance the contract portfolio through formula-based pricing mechanisms, ensure long-term business stability amid high volatility in commodity markets, and strengthen the reliability of logistics chains and planning of agricultural production cycles.

In addition, the parties will explore potential business opportunities in alternative energy sources and biofuels, and expand cooperation in decarbonization and carbon emission reduction.

"We are confident that the signing of the memorandum will mark another important step in building a stable partnership that will contribute to the development of our companies, strengthen energy security, and support sustainable economic growth," said Kernel's Deputy Director for Agribusiness Procurement and Commercial Operations, Ihor Stelmaschuk.

As reported, in April 2024 Kernel signed a TERM contract with the oil refining company Orlen SA for fuel supplies.

PKN Orlen SA is Poland's largest oil refining company engaged in the extraction, refining, and sale of oil and gasoline in Poland, the Czech Republic, Germany, and the Baltic countries. It operates the largest network of 3.4 thousand gas stations in Central Europe and sells its products in over 100 countries.

Before the war, Kernel was the world's largest producer of sunflower oil (accounting for about 7% of global output) and its leading exporter (about 12% of global trade). The company is also one of the biggest producers and sellers of bottled oil in Ukraine and is engaged in growing and marketing agricultural products.

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