The Cabinet of Ministers is launching a pilot project for the underground storage of petroleum products that form part of Ukraine’s minimum oil and petroleum product reserves. The project will operate for the duration of martial law, but for no longer than two years from the date the relevant resolution enters into force.
This is stated in Cabinet of Ministers Resolution No. 1037 dated August 13, 2026.
The Ministry of Energy has been designated as the coordinator of the pilot project. The Ministry of Economy and Environment, the State Agency for Reserve Management, Naftogaz of Ukraine, Ukrtransnafta, the Market Operator and other relevant authorities will also be involved in its implementation.
Ukrtransnafta has been designated as the specialized responsible storage operator for the petroleum products.
Within one month after the resolution enters into force, the Ministry of Energy, together with Naftogaz and Ukrtransnafta, must ensure that state-owned property required for the project is made available. This includes state-owned facilities that are not subject to privatization. The list of such property is contained in annexes to the resolution marked “for official use only.”
In addition, if necessary, Ukrtransnafta will be able to lease state-owned property managed by the State Agency for Reserve Management for the purposes of the project.
The project may be financed from the participants’ own resources and other sources not prohibited by law, including funds from the state budget.
For the duration of the pilot project, the Cabinet of Ministers has also suspended certain provisions of the Procedure for the Creation, Management and Operation of Ukraine’s Minimum Oil and Petroleum Product Reserve System.
After the project is completed, the Ministry of Energy will have two months to submit a report on its results to the government, along with proposals for possible legislative amendments.
