Fuel is illegal: the number of illegal gas stations is growing in Ukraine
20 June 16:22
ANALYSIS
Sabotage – and such a short but succinct statement may be the explanation for why the number of illegal gas stations is increasing. And this is despite a sufficient number of controlling, regulating and other “related” institutions and bodies. Kommersant tried to find out why it is so “difficult” for them to defeat illegal fuel traders.
“He organized the sale of fuel of unknown origin. He worked without the appropriate permit and license for the sale of excisable goods. He sold counterfeit goods at a price below the market price.”
In fact, these three short sentences can be used to describe the elements of a crime related to the illegal sale of fuel.
Sometimes, however, employees of the Bureau of Economic Security (BES), who are supposed to identify such facts, add interesting details to their reports. For example, a resident of Odesa district, who was recently caught selling fuel illegally, used Google Maps to advertise an illegal gas station, where he created a public marker labeled “Gas station” that was accessible to everyone. Perhaps he got caught because of this blatant publicity.
The BES employees also supplement their reports with figures on hundreds of thousands of tons of seized fuel, dozens of dismantled tanks and gas stations, as well as suspicions and cases already sent to court. Thus, since the beginning of the year, 22 people have been notified of suspicion, and 19 cases have been sent to court. Based on the BES materials, 35 licenses were canceled. But this does not mean that there are fewer illegal gas stations. In particular, because, as the Bureau of Economic Security states, most of the defendants in the new criminal proceedings have already been convicted of similar crimes. So, they have returned to their “favorite” business.
How many illegal gas stations are there in Ukraine?
The Ukrainian Oil & Gas Association has recently updated the data of the interactive resource PerevirAZS.info, which receives complaints from citizens about the operation of gas stations with signs of violation of the current legislation. As of May 2025, the number of gas stations with signs of illegal activity in Ukraine is 428.
This figure is, of course, conditional, as it is based on reports from citizens. Director of the consulting group “A-95” Sergiy Kuyun, who has been monitoring this problem for a long time, believes that there are 30 percent more illegal gas stations in Ukraine.
“According to our observations, there are only about 6,000 gas stations in the country, which means that these illegal gas stations account for about 10 percent of the market. And why should we put up with such a “Somalia”?”
– the expert asks logically.
But familiarization with the data of the interactive resource PerevirAZS.info makes it possible to feel the trends. If, for example, as of September 2024, the number of gas stations with signs of illegal activity in Ukraine was 419, then in May it was already 428, which means that there was an increase again. The Association emphasizes this “again”.
By the way, the leaders of the anti-rating are the same. In May, the largest number of illegal gas stations was found in Lviv region – 87, Odesa region – 47, Kyiv region and Kyiv – 44, Ivano-Frankivsk region – 34, and Dnipropetrovs’k region – 29 illegal gas stations.
For comparison, last September the top five had the same composition: Lviv region – 98 illegal gas stations, Odesa region – 42, Ivano-Frankivsk region – 41, Kyiv region – 31, and Dnipropetrovs’k region – 29.
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What else you should know about illegal gas stations
The state and representatives of legal business have many complaints against illegal traders. According to Yaroslav Starovoitenko, President of the Ukrainian Oil and Gas Association, they not only undermine the economy and competitiveness of legal market participants.
“Shadow market players sell counterfeit fuel, avoid taxation, pay salaries in envelopes and grossly neglect basic safety standards – both for employees and others. As a result, they offer fuel at prices that are sometimes below cost. This situation distorts the market, weakens the economy and reduces the financial resources needed to maintain the country’s defense capability,”
– said Yaroslav Starovoitenko.
The Ukrainian Oil and Gas Association also draws attention to the signs of violation of the law in the work of such traders:
- such gas stations do not provide a fiscal receipt or the receipt contains information that the cash desk is operating in test mode;
- such gas stations may not have a consumer corner, which should contain information about the owner of the gas station, fuel prices and documents on product quality;
- illegal filling stations are located in violation of urban planning legislation;
- there are no fire extinguishing equipment at such filling stations, and fuel is sold from tankers, cans in garages, etc.
According to Sergiy Kuyun, illegal gas stations
“are not in the coordinate system of government agencies, the fire service, or services that control consumer protection. From this point of view, such gas stations are particularly dangerous.”
Who should counteract illegal gas stations
Those who illegally sell fuel are mostly involved in an offense under Article 204 of the Criminal Code of Ukraine (illegal purchase for sale, storage for this purpose, as well as sale of illegally manufactured excisable goods). Accordingly, such trade is primarily targeted by the Bureau of Economic Security.
The BES reports on new criminal proceedings against illegal traders on a weekly basis and insists, in particular, on increased liability for illegal trafficking in excisable goods.
“The liability in the form of a fine, as provided for in the first part of Article 204 of the Criminal Code of Ukraine, is not commensurate with the profits received by the offenders. As a result, most of the defendants in the BES criminal proceedings have previously been convicted of similar crimes.”
– this is how Serhii Perkhun, Acting Director of the BES, explained the need for legislative changes during a meeting with the leadership of the Ukrainian Oil & Gas Association.
But, for example, Andriy Gerus, Chairman of the Parliamentary Committee on Energy, Housing and Utilities, believes that sanctions are currently sufficient to reduce the illegal sale of excisable goods, and everything depends on the effective work of the tax authorities and the BES. Serhiy Kuyun, director of the A-95 consulting group, agrees Sergiy Kuyun.
“In fact, there are at least four institutions in Ukraine that can and should confront illegal fuel traders: The BES, the tax office that issues licenses for trade in excisable goods, as well as the police and local authorities. But quantity does not mean quality, and it can be difficult to find the ultimate, or main, responsible party in a particular situation. Therefore, it often resembles a movement in a circle.
According to Serhiy Kuyun, today there are many law enforcement officers with a lot of powers who can come and simply close an illegal gas station, and no additional laws are needed.
“This is one of the strategies to hush up the issue. The BES can say that “this is not our issue at all, because we are dealing with the illegal trade in excisable goods. And this gas station has a license. Who issued it? The tax authorities did. We ask the tax authorities: “Why did you issue it?” They answer: “because we have the whole package of documents”. “But there is no land,” we say. They can answer that they are not authorized to verify the authenticity of such documents, i.e. they were given the documents and they are in the right form, but they do not investigate whether they are genuine. So, I’m sorry. If you don’t like the gas station under the power line, you should contact the police. And you have to write a statement there. And they have the authority to close it. And the police point to the tax authorities, saying that they are the ones who issue the license. And everything went in a circle. That is sabotage. Because they just don’t care,”
– states Serhiy Kuyun. But he personally places a significant part of the responsibility on local authorities.
What does the local government have in its arsenal?
Director of the consulting group “A-95” Sergiy Kuyun reminds that the vast majority of such illegal gas stations do not have legally allocated land, i.e. a land plot that would be allocated for gas stations in a targeted manner and in accordance with the law.
“And, accordingly, this is a question for the local authorities – how they allow it,”
– says the expert and recalls the situation in Lviv.
“The situation in Lviv is so comical now. They recognize the problem with the presence of illegal gas stations. They have investigated the issue and found out that there is no legally allocated land under them, that is, the city council did not allocate this land to them. And they state this, but do nothing to close these gas stations. This is called sabotage,”
– states Serhiy Kuyun.
He also cites another example where there is a desire to counter illegal gas stations.
“I know the deputy mayor of Ternopil, and there are no such gas stations there. According to the official, this is because it is impossible to negotiate with them. Yes, he said they have had similar cases, but they don’t go to court, they don’t write to anyone, they just dig up the entrance to this gas station, saying that the city is just doing repairs. And that’s it, the illegal gas station is closed. And this is such an elementary example,”
– says Sergiy Kuyun.
In other words, the expert concludes, if the city council does not want illegal gas stations to operate in the territory for which it is responsible, they will not operate there.
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Sergiy Vasylevych
