The oil industry does not play a major role in the Ukrainian energy sector and has smaller economic and political significance than the gas, coal and nuclear sectors. The issues linked to the Ukrainian fuel sector are rarely given publicity in the mass media. Meanwhile, a comprehensive analysis reveals that there has been a painful and durable collapse in this strategic branch of the economy.
Last week, the Supreme Administrative Court judgement passed a ruling confirming the mysterious Livela company’s right to the untaxed import of crude oil and fuels. This company is most likely linked to politicians belonging to the Party of Regions. The Court’s judgement may form the basis for the resumption of the company’s activities; it has led to multi-billion losses for the Ukrainian budget and harmed the profitability of the oil processing industry.