The full-scale Russian invasion has radically changed the way the fuel market works. However, the list of the largest gas station networks remained the same as it was before the war. With a few exceptions: the state has become a full-fledged player in the fuel retail market.
The full-scale war significantly changed the fuel trading business in Ukraine. From the first days of the war, the Russians shelled Ukrainian oil depots owned by large chains of gas stations. This made impossible the old logistics of this business, which included storing large quantities of fuel at oil depots with gradual distribution to gas stations. Now fuel retailers are forced to work on their wheels, storing fuel at gas stations and constantly delivering new batches of fuel there.
The second problem was the need for large-scale diversification of fuel supplies to the country. Before the full-scale war, a significant part of the fuel came to Ukraine from Russia and Belarus, as well as by sea. The war and the blockage of maritime logistics forced fuel market players to urgently diversify supplies, which they managed to do in the summer of 2022.
The stress test that the fuel market underwent in the first year of the war changed not only the format of its work, but also the main players. Since the fall of last year, the position of the largest player in fuel retail, the Privat group, has weakened, having lost control over its key assets Ukrnafta and Ukrtatneft. At the same time, the state represented by Naftogaz, which now controls the networks of Ukrnafta gas stations, as well as gas stations of the former Glusco network, has become a strong player in the fuel market. The state can increase its share in the fuel business if the Russian trace is proven in two more networks, Amic and Shell. Both companies are suspected of having Russians in their ownership structure, and if this is proven, the share of Russian shareholders will be confiscated and transferred to the management of one of the state companies.
At the same time, the core of the largest players in the fuel market has remained almost unchanged, and after the country overcame the fuel crisis, gas station networks returned to selling fuel in their traditional price segments. Some gas stations of both large system players and small regional networks were destroyed as a result of military operations and missile attacks. And although major players periodically restore destroyed gas stations in de-occupied territories, it is now difficult to say exactly how many gas stations are now left to operate in Ukraine. However, despite all the wartime challenges, competition in the fuel retail market has become tougher, which requires the largest players to quickly respond to new challenges and constantly develop.
Whales of the fuel market. “Privat” and “Naftogaz”
Even despite the fact that the leader of Privat, Igor Kolomoisky, is under arrest, the Privat members remain perhaps the largest player in the fuel retail market. Now private owners control about 1,000 gas stations throughout Ukraine, of which more than 800 gas stations operate. And before the start of a full-scale war, the Privat group was the absolute hegemon in the fuel retail market. Thus, in 2021, according to the Antimonopoly Committee, Privat controlled 169 gas station operators (Avias, Avias+, ANP and others), who managed almost 25% of gas stations in Ukraine (1,625 gas stations in total). All these operators traded fuel produced at the Kremenchug oil refinery through the Avias cashless payment system with scratch cards and fuel cards. And the center in Dnieper coordinated the work of gas station networks.
But after a full-scale invasion, the network began to gradually lose its position. The biggest blow to the Privatists was the nationalization of the Ukrnafta company, which is the country’s largest oil producer and also owned more than 500 gas stations and the Ukrtatnafta company, which controls the only large oil refinery in Ukraine in Kremenchug. In November 2022, the National Securities and Stock Market Commission decided to forcibly alienate these companies and transfer them under the control of the Ministry of Defense.
Before nationalization, Privat members formally managed companies in partnership with the state. Thus, in Ukrnafta, Kolomoisky’s companies owned 42% of the shares, and the state, represented by the Naftogaz group, owned 50% plus one share. In Ukrtatnafta, Kolomoisky, together with his partner Gennady Bogolyubov, owned 60% of the shares, and 40% belonged to the same Naftogaz. In general, this partnership lasted many years and was very difficult for the state. Only because of tolling schemes in Ukrnafta, the state lost billions of hryvnia annually. In addition, control over production and oil refining gave Privat’s gas stations such competitive advantages that no one else had on the market.
Therefore, the Ukrnafta gas station network, which owns more than 500 gas stations (456 of them are operational), is managed by Naftogaz and the Ministry of Defense. In addition, Naftogaz Oil Trading, a daughter of Naftogaz, manages 172 gas stations of the former Glusco gas station network. Currently, 72 of these gas stations operate under the U.GO brand. In August, the National Agency for Asset Tracing and Management (ARMA) terminated asset management agreements with Naftogaz Oil Trading for the Glusco gas station network due to the fact that the manager systematically provided false information about the income received from the use of gas stations and oil depots. Already in September, ARMA signed a corresponding management agreement with Ukrnafta. However, the actual transfer has not yet taken place and, as of early November, the network is still under the control of Naftogaz Oil Trading, which continues to launch new gas stations in the network.
The Glusco network was formed in 2016 on the basis of gas stations of the Russian state company Rosneft, and belonged to Proton Energy Group, the ultimate owner of which was Nisan Moiseev. Moiseev was close to pro-Russian politician and godfather of Russian dictator Vladimir Putin, Viktor Medvedchuk. Glusco traded Rosneft oil products, which were supplied through the PrikarpatZapadtrans pipeline, controlled by Medvedchuk. But in February 2022, Medvedchuk and his entourage came under sanctions, and their assets were seized. It is worth noting that Medvedchuk’s cordon at the end of 2021 tried to restore control over Glusco through dummies.
Market makers. OKKO and WOG
“Green” gas station chains OKKO and WOG are considered market makers, that is, key players in the fuel market who also influence smaller players with their pricing policy. These networks are direct competitors and operate in the same price segment, selling fuel at above-average prices, but they are not considered premium. OKKO controls 403 operating gas stations throughout the country, and WOG controls 400 gas stations. Both companies are major importers of fuel to Ukraine and major players in the small wholesale market.
The owner of the OKKO company is the Galnaftogaz concern, the ultimate beneficiary of which is businessman Vitaly Antonov. WOG as of November 2023 Owned by Sergey Lagur and Stepan Ivakhov. But the children of the late company founder Igor Eremeev seem to have lost control of the group back in 2022.
Western companies with a Russian footprint. Amic and Shell
The Austrian company Amic Energy came to Ukraine in 2016, purchasing 240 gas stations of the Russian Lukoil. Before the full-scale war, the company was fifth in terms of fuel sales volumes and controlled 6.7% of the fuel retail market. The owners of the company are Austrians Günther Mayer, Johannes Klesl, Andreas Zernetz and Briton Philip Andrew Gillen.
However, in 2022, the company fell into scandal after the Bureau of Economic Security accused Amic Energy of tax evasion, as well as paying dividends to Russian owners, and the court seized the company's property. But AMIC Ukraine denied any connection with the Russians and went to court to appeal the decision to seize the property. However, the seizure of property had almost no effect on the company’s work and 227 gas stations of this network still continue to operate.
The Shell gas station chain owns 132 gas stations in Ukraine and trades in the same price segment with Amic. The owner of the network since 2008 is Alliance Holding LLC. According to media reports, this company was created as a joint venture of the British Shell (51%) and the Alliance Oil Ukraine company, which in turn is owned by the Dutch company CICERONE HOLDING BV
In early October, the Ministry of Justice filed a lawsuit with the High Anti-Corruption Court for the recovery of assets belonging to Russian businessman Eduard Khudainatov as state income. Among the assets, according to the Ministry of Justice, may be the company CICERONE HOLDING BV, which owns a share of the Shell network in Ukraine.
Low-cost airlines. “BRSM-Nafta” and “Motto”
The BRSM-Nafta gas station network includes 167 gas stations throughout Ukraine. Its owner is businessman from Kyiv Andrey Biba. The chain sells fuel in the low price segment, and is also actively developing a line of stores at its filling stations. Currently, 57 gas stations of this network operate full-fledged “Good market” supermarkets.
The Motto gas station network includes more than 150 gas stations. This network also trades in the low-cost segment. The owner of the company is Kiev resident Leonid Naumchik, but the media linked this network of gas stations with the Minister of Energy of the Yanukovych era, Eduard Stavitsky. Stavitsky was previously Biba’s partner in BRSM-Nafta. However, after the victory of the Revolution of Dignity, the ex-minister fled from Ukraine, and in 2018, BRSM-Nafta terminated the lease agreement with 63 gas stations owned by Stavitsky. In the same year, these gas stations became part of the Motto network. The network also included low-liquidity stations of the WOG network, leased by Motto.
BRSM-Nafta and Motto have repeatedly gotten into scandals related to the sale of low-quality fuel produced at semi-legal mini-refineries. In addition, the Belarusian Republican Youth Union was accused of optimizing taxes during the war, since the tax burden on VAT in 2022 was 0.04%. However, already in 2023, the chairman of the parliamentary committee on finance, tax and customs policy, Daniil Getmantsev, reported that in August the company significantly increased the tax burden, paying more taxes than any other network.
