Russia and Ukraine are the world’s largest producers of sunflower oil, accounting for 73% of the global supply according to the Council of Palm Oil Producing Countries.¹ Turkey, the world’s largest sunflower importer, imports mainly from Ukraine and Russia. According to the data of the Agricultural Economy Research Institute of the Ministry of Agriculture and Forestry, in the 2020-2021 season, Turkey realized 32.4% of the world’s sunflower imports. The EU ranks second after Turkey with 27.8%. Unfortunately, the tension between Ukraine and Russia is affecting crude oil imports in a negative way to a large extent. Under such circumstances disputes become inevitable.

Federation of Oils, Seeds and Fats Associations (“FOSFA”) had crucial importance in concern with international seeds and oil trade since this organization was established in 1863 in London with the sole purpose of protecting and promoting the oil, seed, and fats trade in the world. FOSFA consists of three bodies that affect the international trade world: first of all, it focuses on protecting the business, secondly, it drafts standard pro forma contracts and lastly, it administers arbitrations and arbitration appeals for resolving disputes arising out of contracts for the trade in oilseeds, oils, and fats and edible nuts.