UPG is suing for the right to build a gas station, which is listed as a “store” in the documents

6 May 17:27

A legal dispute over construction on a plot of land zoned “for commercial buildings” has been ongoing in Kryvyi Rih for three years. According to a ruling by the Dnipropetrovsk District Administrative Court dated April 20, 2026, the case has been remanded for a new trial in the court of first instance. Why were permits issued for a “commercial facility” if the actual characteristics of the construction indicate a high-risk facility? How does the company respond to the plaintiff’s claim regarding the discrepancy between the urban planning conditions and the facility’s actual technical design? What are the activists’ concerns, and when can a decision be expected? "Komersant Ukrainian" investigated. 

Court reviews legality of UPG construction

According to the case materials, in March 2022, the Urban Planning Department of the Kryvyi Rih City Council issued construction permits to UPG LLC.

“New construction of a multifunctional complex comprising an administrative building, a store, and a café, with the demolition of the existing unfinished building.”

The land under the facility is also designated strictly for commercial use. The court notes:

“Its designation is 03.07: For the construction and maintenance of commercial buildings; type of use—construction of an administrative building (store, hotel, café).”

The plaintiff demands that these permits be revoked, claiming that under the guise of a commercial establishment, a high-risk facility is planned to be built. The ruling cites the key claim.

“Due to the concealment by the Limited Liability Company ‘YUPIDJI’ when submitting the application… of its actual intentions regarding the construction of a gas station and a gas filling station on the land plot… the specified urban planning conditions and their restrictions are unlawful.”

The plaintiff emphasizes that this substitution of terms allows the developer to circumvent strict fire safety and sanitary requirements, which are mandatory for gas stations but not required for ordinary stores.

What does “YUPIDZHI” say?

The design permit (urban planning conditions and restrictions No. 58 dated March 29, 2022) was issued by the Department of Urban Planning and Land Relations of the Kryvyi Rih City Council Executive Committee.

The text of the resolutions indicates that the company categorically denies the allegations and is actively defending the legality of the documents it received in courts of all instances. The company insists that it received the documents from the Kryvyi Rih City Council Department in accordance with the law, and that the claims of “hidden intentions” to build a gas station are merely the plaintiff’s assumptions, which lack documentary evidence in the urban planning conditions.

As a reminder, UPG LLC, registered in 2014, is part of a large fuel group developed by businessman Volodymyr Petrenko. The brand is operated by Ukrpaletsystem LLC. Today, the UPG network ranks among the top three players in Ukraine’s fuel market. The network comprises over 500 gas stations across 21 regions of Ukraine. The company operates one of the country’s largest fleets of fuel tankers and owns its own rail tank cars. During the full-scale war, the company actively funds humanitarian and military initiatives. In particular, the “Energy of Good” program directs a portion of sales profits to aid those affected by the war. In 2025, the company ranked 22nd in Forbes’ list of “Ukraine’s 202 Largest Private Companies.”

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In the public spotlight: activists warn of danger

While disputes over the terminology “store or gas station” continue in the courts, civic activists are closely monitoring the situation. They emphasize that the emergence of fuel facilities in locations not designated for this purpose is not a new problem for Kryvyi Rih. For years, the public has been documenting the operations of networks that operate without licenses, commissioning, or proper environmental assessments, often located in critical proximity to residential buildings.

In particular, activist Anton Petrukhin, who has been thoroughly investigating the city’s illegal fuel market since 2015, emphasizes that such facilities not only violate zoning regulations but also seriously harm the environment and safety due to the low quality of the product.

“Illegal fuel production facilities and illegal gas stations cause enormous harm to the environment… If gasoline contains 25 times more sulfur, that means sulfur emissions will be 25 times higher than we calculated. And with diesel fuel, the situation is even worse: sulfur levels were found to be 150 times higher!” notes Anton Petrukhin.

Related

A scandal similar to the one in Kryvyi Rih has erupted in the capital: construction of a Class SS3 gas station linked to the UPG brand is underway on Dobrobutna Street. This was reported by the publication “StopCor.” According to the documents, the client is Zhytomyravtogazservice LLC, and the contractor is Korosten-MBO LLC. The key complaint regarding the facility is the critical reduction of the safety zone: underground tanks are being installed just 12 meters from residential buildings, whereas according to DBN B.2.2-12:2018 “Planning and Development of Territories,” the minimum safe distance for such complexes must be 50 meters. Official sources at the Kyiv City State Administration’s Department of Urban Development confirm that the construction does not comply with current regulations, and law enforcement agencies have already opened a criminal investigation into the legality of the work.

When can a decision be expected?

Thus, the situation in Kryvyi Rih points to systemic discrepancies between the developer’s project documentation and state building codes. In the Kryvyi Rih case, the key issue in the court proceedings is whether the land’s designated purpose aligns with the actual intent to build a gas station. A preliminary hearing is scheduled for May 12, 2026. And this will likely serve as a litmus test for the entire urban planning control system.

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