Mobility Above All: How Ukrainian Gas Stations Are Adapting Their Operations Following Enemy Attacks
6 July 13:35
ANALYSIS 
Recently, Ukrainian gas stations have been subjected to regular enemy attacks. In the first few days of July alone, fuel infrastructure facilities in the Sumy, Dnipropetrovsk, Mykolaiv, and Kharkiv regions were targeted. "Komersant Ukrainian" investigated how this is already affecting—and may continue to affect—the supply of fuel to consumers.
Over the past two months, more than 150 gas stations have burned down in Ukraine. These figures were recently cited by Andriy Pyvovarskyi, CEO of the WOG network and former Minister of Infrastructure. According to him, at first glance, this resembles the situation in Russia, but the outcome is radically different.
“In Russia, after attacks, there are lines at gas stations, fuel shortages in certain regions, and supply disruptions. In Ukraine, however, there are no such problems. The reason is a diversified fuel market. We have dozens of suppliers, various import routes, competition, and a well-developed logistics network,” Andriy Pyvovarsky wrote on Facebook.
A similar conclusion was reached last Friday during question time with the government in the Verkhovna Rada by Oleksiy Sobolev, Minister of Economy, Environment, and Agriculture. He noted that as of now, there is no fuel shortage for the civilian sector in Ukraine; the market is well-supplied, imported fuel is being contracted, and logistics are functioning.
However, enemy attacks are already forcing adjustments to gas station operating schedules, strengthening station security, and exploring alternative options for supplying consumers with fuel.
Mobility for Stability
The deteriorating security situation has already prompted the WOG network to implement, effective July 1, special operating procedures at its gas stations in the Sumy, Chernihiv, Kharkiv, Zaporizhzhia, Dnipropetrovsk, and Kherson regions, as well as at some stations in the Poltava region, a special operating regime effective July 1, which, in particular, involves suspending operations from 9:00 p.m. to 7:00 a.m.
Protective gabions have also begun to be installed at the gas stations.
And, according to Oleksandr Sirenko, an analyst at the consulting firm “NaftoRynok,” such protective measures at many gas stations should become not a right, but an obligation.
“We need to require those operating within 100 kilometers of the front line to implement at least minimal protective measures. Mesh screens, sandbags, concrete blocks—all of these should be effective. Operators say they don’t have enough money for this, but there’s a proposal here as well: taxes for these gas stations should be waived or reduced for the duration of martial law. “I don’t know to what extent the government will go along with this. But it needs to be encouraged to do so. And, first and foremost, we’re talking about an advance payment of income tax,” the expert emphasizes.
During question time for the government in the Verkhovna Rada , Minister of Economy, Environment, and Agriculture Oleksiy Sobolev attempted to explain what the government is working on and with whom, in order to ensure fuel supplies under the current conditions.
“We are currently working very closely with regional military administrations and the market; consultations take place daily to develop various models in different regions that will help secure fuel in those areas, distribute it, and protect gas stations. For example, delivering fuel directly from transport vehicles without stockpiling it on site. We are also discussing with the market a possible insurance mechanism or the creation of a joint fund that would allow us to compensate for or finance the necessary measures,” the minister noted.
Oleg Grigorov, head of the Sumy Regional Military Administration, who recently met with owners and representatives of gas station chains in the Sumy region, provided some specifics.
“Following the meeting, we developed a mechanism to ensure the region has stable access to fuel even amid constant enemy attacks. We are working on simplifying procedures for the temporary operation of mobile and modular gas stations while damaged stations are being repaired,” the official said.
According to petroleum products market expert Leonid Kosyanchuk, it is now urgent to amend the legislation and allow, at least temporarily—for the duration of martial law—the use of mobile gas stations. And not only in frontline regions, but throughout Ukraine.
“There’s nothing complicated about this. We simply need to amend the current legislation and allow such gas stations to operate, because we still need to purchase the necessary equipment for these fuel tankers and outfit them. And no one will do this until there is legislative authorization. We also need to develop a procedure for tracking fuel sales. And if we don’t take proactive measures today—and we understand there’s no reason to believe Russia will stop destroying the retail infrastructure—then we’ll face problems,” says the expert.
A Buffer for Resilience
There is no fuel shortage in Ukraine; imported supplies are being contracted, and logistics are functioning. However, this conclusion—which has also been voiced by government officials—has not shielded the fuel market from renewed discussions about establishing minimum reserves of petroleum products.
The fuel situation this spring—when the crisis in the Strait of Hormuz caused problems with fuel procurement—seems to have been a sufficient argument to convince some government officials that the country needs to build up fuel reserves. Especially since there is a specific law that mandates this. But to what extent is this justified given the regular hostile attacks on oil depots and gas stations?
Oleksandr Sirenko, an analyst at the consulting firm “NaftoRynok,” cites two additional possible reasons why the idea of establishing minimum fuel reserves has resurfaced:
“Perhaps one of the market participants thought there was another way to try to make a profit off those who lack storage capacity—and lobbied for it. The second reason—and this is the most likely one—is that the government has recalled its obligations regarding EU accession.”
As a reminder, the law in question was adopted precisely to fulfill Ukraine’s obligations regarding the implementation of the relevant EU Directive.
Fuel market representatives agree on the advisability and necessity of creating fuel reserves, but they link this to the availability of sufficient underground storage facilities. The government reportedly promises to develop the necessary infrastructure. Another matter is how quickly this will be done and at whose expense. Hostile attacks also indicate that it is not worth rushing to build up such reserves. This is also emphasized by petroleum products market expert Leonid Kosyanchuk.
“The issue of creating fuel reserves is very important, and this problem has been dragging on since 2007. But this issue should be postponed until the end of the war. Because as soon as the enemy finds out that at least two fuel tankers have arrived somewhere, five drones could be flying there tomorrow. All existing reserves are currently being traded practically on the spot, and there’s no other way it can be right now.”
And this reality is already forcing adjustments. According to Oleksandr Sirenko, an analyst at the consulting firm “NaftoRynok,” the intensification of attacks on gas stations and other oil and gas facilities has already forced even the most ardent advocates of building up reserves to put the idea on hold, because during a war, this is definitely not something that should be done.
