The shadow fuel market in Ukraine has nearly halved since the Russian invasion began, Serhiy Kuyun, director of the A-95 Consulting Group, reported during a briefing at the Media Center Ukraine.
“This contraction has resulted from unforeseen factors—not from the actions of tax authorities, law enforcement, or regulatory changes, but rather from the destruction of these small production facilities by Russian attacks,” he said.
Russian strikes have obliterated about half of Ukraine’s mini-refineries, which numbered around 20 before 2022, Kuyun said.
“One of these refineries was completely wiped out in early June in Poltava Oblast,” he said.
“There are now fewer plants, significant issues with raw materials, and consequently, reduced production volumes.”
Kuyun estimates that production at these refineries now accounts for less than 10% of the market, down from 25-30% before 2022.