In Ukraine, there is a proposal to create a $200 million special fund to rebuild the fuel sector: details of the NAU initiative
12 August 18:35
In Ukraine, there is a proposal to introduce a new special levy on petroleum products to compensate the fuel industry for losses caused by Russian attacks, as well as to provide companies with access to preferential loans for the construction of underground storage facilities. The Ukrainian Oil and Gas Association (NAU) has submitted this initiative to the government and parliament. This was announced by UGA President Yaroslav Starovoitenko during an online meeting with business representatives organized by the Verkhovna Rada Committee on Finance, Tax, and Customs Policy, according to "Komersant Ukrainian".
The association’s key proposal is to create a special fund in the state budget with an annual volume of approximately $200 million. This fund would be financed by an additional levy on petroleum products entering circulation.
“In our opinion, an additional levy should be imposed on every metric ton of petroleum products brought into circulation within Ukraine. This levy should be directed to a separate special fund within the budget, and these funds will be used specifically to cover the fuel and infrastructure costs incurred by fuel companies,” explained Yaroslav Starovoitenko.
According to the NAU’s calculations, the levy will amount to $20 per metric ton of fuel . As a result, the cost of one liter of fuel will rise to $1.
Everyone who puts fuel into circulation—including both importers and domestic producers—will be required to pay the levy. Payment of the levy will be a mandatory condition for customs clearance or registration.
It is proposed that the administration of the fund be entrusted to the State Export-Credit Agency (ECA), which already has relevant experience. The mechanism is planned to be introduced for the duration of martial law, with the possibility of extending it for another 1–2 years to fully cover the losses incurred. The association has already prepared a corresponding draft law.
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The NAU identifies ensuring the safe storage of petroleum products as a second area of support for the industry. To this end, the association is calling for the scope of Cabinet of Ministers Resolution No. 594 of April 29, 2026 (which currently regulates preferential loans for the development of distributed power generation) to be expanded to include the fuel sector. This will allow the market to secure loans at 10% per annum for up to 5 years to modernize existing oil depots by constructing underground storage tanks.
Key terms of the loan offer:
Maximum loan amount: up to 100 million UAH ($2 million) per facility.
Underground storage capacity: 4,000 cubic meters.
Borrower requirements: completion of construction within 1 year.
“Existing oil depots have the infrastructure, logistics, land, and everything else (…) Currently, some companies are carrying out pilot projects at their own expense. But if there is also government support, this can be quickly scaled up and rolled out across the entire country,” emphasized the head of the National Aviation Administration.
According to the initiators of the proposal, if adopted by the government, the fuel market will not only be able to accelerate recovery from enemy shelling but also quickly establish a robust, decentralized network of underground storage facilities across the country.
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