Ukraine will start storing strategic fuel reserves underground: a new requirement will be introduced from 2027

In Ukraine, part of the minimum reserves of oil and oil products will begin to be stored underground. The Cabinet of Ministers launched a two-year experiment, and from 2027 a separate requirement will be introduced for diesel fuel — at least 20% of its minimum reserves must be in underground storage.

The government adopted the relevant resolution on August 13, 2026.

The experiment will operate during martial law, but not longer than two years. The Ministry of Energy will coordinate the project, and Ukrtransnafta has been designated as the specialized responsible custodian.

Fuel will be buried underground

The government envisaged two options for underground storage of strategic reserves.

The first is the use of special tanks placed under the soil layer. Such objects must be equipped with systems for accounting for volumes of oil products.

The second option involves the creation of full-fledged underground storage facilities, which may include tanks, pipelines and the necessary technological equipment.

Salt caverns, depleted oil and gas deposits, and other suitable geological formations can be used for this purpose.

“Ukrtransnafta” will be able to attract certain state property to equip such facilities.

Not only Ukrtransnafta

The company’s status as a specialized responsible custodian will not mean a monopoly on underground fuel storage.

Other operators and market participants will also be able to create their own underground storage facilities if they meet the criteria set by the state.

Participants of the experiment will have to transfer information about stocks to a special reporting system.

Contracts of responsible storage must also contain the conditions defined by the government regarding the volume of fuel, its storage terms and control mechanisms.

From 2027 — a new rule for diesel

A separate requirement will come into force already in 2027.

Market subjects and operators will have to ensure underground storage of at least 20% of the total volume of diesel fuel, which is included in their minimum reserves.

Thus, part of the strategic diesel reserve will be physically separated from conventional ground storage.

The introduction of underground storage occurs during martial law, when fuel and energy infrastructure facilities remain among the potential targets of Russian attacks.

The experiment should show how effective underground storage can be for the formation and preservation of minimum reserves of oil products in Ukraine.