Black market fuel sector shrinks by nearly half due to russian strikes, says Serhii Kuiun

Since the onset of the full-scale invasion, the black market fuel sector has contracted by almost 50%, largely due to damage from enemy shelling.

Serhii Kuiun, a fuel market expert, made this announcement during a briefing at the Media Center Ukraine.

“This market has indeed shrunk. The reduction hasn’t been due to efforts by tax authorities, security forces, or regulatory changes. Instead, it’s an unintended consequence of the russians destroying these small operations. Out of approximately 20 mini-plants active before 2022, half have been obliterated. For instance, one such facility in the Poltava region was completely destroyed in early June, leaving nothing behind. As a result, there are fewer of these plants now, and sourcing raw materials has become challenging under the current circumstances, leading to limited production. Today, black market gasoline likely accounts for less than 10% of the total market, compared to about 25-30% before 2022,” Kuiun stated.

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