GEOGRAPHICAL DIVERSIFICATION OF PETROLEUM PRODUCTS IMPORTS AS A FACTOR OF ECONOMIC AND CUSTOMS SECURITY OF UKRAINE

Abstract

The article outlines the problems of Ukraine's oil refining sector, which led to a critical dependence on the import of petroleum products at the onset of a full-scale war. In particular, the oil refining sector of Ukraine was systematically dismantled by russian companies after privatization, and even after the annexation of Crimea and the invasion of certain districts in Donetsk and Luhansk regions, Ukraine remained critically dependent on importing petroleum products from russia and Belarus. As a result, following the onset of full-scale invasion and the rupture of trade relations with aggressor countries, Ukraine faced an acute need to redirect its purchases of petroleum products towards alternative sources. The purpose of the article is to identify trends in diversifying the geographical structure of petroleum product imports to Ukraine in the context of full-scale war from the perspective of economic and customs security. Unprecedented measures by market participants and the government are characterized, which ensured a radical restructuring of the structure of petroleum product imports after the loss of primary supply sources. Ukraine was able to successfully restructure its model of petroleum product imports, primarily due to the intensification of using road transportation, which, after the onset of full-scale invasion, provided approximately 40% of gasoline and diesel fuel imports, whereas similar shipments were sporadic until February 24, 2022. Furthermore, Ukrainian oil traders were successful in significantly diversifying the geographical structure of petroleum product imports, which contributed to its stability and positively impacted economic and customs security. Further directions for ensuring energy stability could involve the formation of legislatively defined minimum reserves of oil and petroleum products in Ukraine, sufficiently protected from aggressor attacks, the development of oil transshipment infrastructure on the western and southern borders, as well as investments in logistic and oil refining infrastructure of allied Western countries.