Ukraine plans to create strategic fuel reserves: why it is difficult to store them abroad

Ukraine should gradually form minimum reserves of oil and oil products, calculated for 90 days of consumption. Part of the fuel is allowed to be stored abroad by law, but implementing this mechanism in practice turned out to be difficult due to legal restrictions, a shortage of tanks, and logistical problems.

The Law “On Minimum Reserves of Oil and Oil Products” entered into force in December 2024. Formation of reserves is calculated for eight years. In 2026, the norm is 6%, and next year it should increase to 9% – this is approximately 600 and 900 thousand tons of light oil products, respectively.

One of the main problems remains the safe storage of such volumes in Ukraine. Due to the Russian attacks, a large part of the fuel infrastructure has been damaged, so market representatives advocate the creation of underground storage facilities.

Why is it difficult to store fuel abroad?

Legislation allows up to half of the regulatory volume of reserves to be stored outside of Ukraine. It is also possible to conclude so-called ticket agreements – when a foreign operator guarantees the supply of the required amount of fuel.

However, there is currently no clear mechanism for interaction with foreign companies. In particular, questions remain regarding confirmation of the availability and quality of fuel, verification of the storage company’s capabilities, and reporting.

Another problem is timing. In fact, one of the available regimes for the storage of fuel by a foreign company without customs clearance is transit, which is limited to 60 days in the EU.

There is a shortage of reservoirs in neighboring countries

A significant limitation is the lack of available capacity for physical storage of fuel.

Representatives of the Polish PERN and the Romanian National State Reserve Administration previously stated that there were not enough free tanks.

Building new facilities also requires significant time and investment. According to the estimates of market representatives, the construction of new tanks can last from three years.

More storage options are available in Latvia, Estonia, Austria and Germany. However, the remoteness of these countries creates another problem — the long transportation of fuel to Ukraine.

According to market participants, delivery from certain countries may take more than two to three weeks, which reduces the effectiveness of the reserve in the event of an acute shortage.

Fuel abroad can be blocked during a crisis

The mere fact of storing reserves in Europe also does not guarantee that Ukraine will be able to quickly obtain them in a crisis situation.

In the spring of 2026, a number of countries temporarily restricted the export of petroleum products. As a result, part of the fuel already purchased by Ukrainian companies was blocked abroad.

In addition, Ukraine’s western border is already operating with a significant logistical load. Therefore, even the presence of additional fuel in neighboring countries does not mean the ability to quickly increase its supply.

The alternative is storage inside Ukraine

According to market participants, one of the priorities should be the development of internal infrastructure and the creation of underground fuel storage facilities.

This would make it possible to shorten the path from the reserve to the domestic market and direct investments into Ukraine’s own infrastructure.

At the same time, the system of minimum reserves continues to adapt to the conditions of war. The legislation has already been revised several times, and the package of proposed changes to it includes more than 300 amendments.

Experts emphasize that the creation of strategic reserves during the war has no direct analogues in Europe, so Ukraine will have to adjust the rules in the future in accordance with security and market conditions.