Ukraine Lube Industry Shifts from Russia

Share

Ukraine imported 175,200 tons of finished lubricants in 2024, mostly from Polish and Turkish suppliers, consulting firm Nefterynok reported, indicating a sharp shift from Russian sources and domestic supply since the war with Russia began in 2022.

Separately, Ukrainian lubricant suppliers have established a trade association aiming to curb imports of Russian finished lubes.

Nefterynok, which publishes monthly data on Ukraine’s fuels market, this year for the first time included figures on the lubricants sector. The reports shows that the country’s lubricant demand has proven resilient, holding close to the prewar benchmark of about 200,000 tons in 2021.

Poland’s Orlen Oil was the leading foreign supplier last year, shipping 29,100 tons of lubricants into Ukraine last year. In total, Orlen group companies supplied 31,600 tons, cementing the Polish firm’s position as the country’s key partner. Other major sources were Aktas Kimya in Turkey with 9,100 tons, Azerbaijan’s Alco with 9,000 tons, France’s TotalEnergies with 7,800 tons and Turkey’s Tayraş with 7,100 tons.

In Ukraine, reception of those imports was concentrated among a handful of distributors and manufacturers. Eko Oil Production led the market with 15,200 tons, followed by SP Yukoil (14,800 tons), Inbau (13,100 tons), Gaztron Trade (9,500 tons), and TD Gaztrim (9,300 tons). Together, these companies accounted for more than 60,000 tons, underscoring their role as the principal conduits for supply at a time when traditional production hubs in occupied territories such as Berdyansk, have been excluded from Kyiv’s regulatory framework.

The Nefterynok findings arrive after the formation of the Ukrainian Lubricants Association, established in late May by a group of domestic producers and distributors. Founding members include Dnipro-based LLC joint venture Yukoil and LLC Gaztron Trade and LLC KSM-Trade from Kyiv.

The association says its mission is to “form a transparent, competitive and stable lubricants market in Ukraine, as well as to protect the interests of bona fide manufacturers, importers, and suppliers.” Yukoil, one of the founding companies, emphasized that the group’s creation represents a collective step toward shielding the industry from instability.

“Our goal is to ensure a fair and competitive market environment and to support those companies that continue to invest in Ukraine, even under wartime conditions,” the company said in its May 29 news release.

The association excludes recognition of producers operating in areas under Russian occupation. One of the founding declarations of the ULA was a pledge to prevent imports of lubricants, raw materials or production components from Russia and Belarus.

 “Over the three years of war, the members and founders of the ULA have carried out a deep transformation of raw material supply chains as well as systems for distributing finished products,” the association said in a July 10 press release. “We have completely abandoned the use of base oils of Russian and Belarusian origin. Today, Ukrainian producers work exclusively with refineries from Europe, Asia, North and South America.”

The statement also warned that Russian refiners continue to seek indirect routes to penetrate Ukraine’s market and called for “joint action” by market participants, government bodies and international partners to prevent purchases of Russian materials.

The group voiced its readiness to cooperate with the country’s regulatory and security bodies to tighten oversight. This reflects both national security imperatives and a desire to reassure international suppliers that the Ukrainian market is aligned with Western trade practices.

Lubricant imports in the first seven months of 2025 were nearly 97,700 tons, down 3% from the same period last year. Nefterynok suggests the import market will remain on a similar scale this year, likely finishing the year in the range of 170,000–180,000 tons.

The combination of resilient import channels and the institutional backing of the ULA offers the clearest picture yet of where Ukraine’s lubricant market is headed. Imports from European and Turkish partners are expected to dominate, while the new association provides a forum for defending the interests of local firms, building market transparency and coordinating with regulators.

“The establishment of the Ukrainian Lubricants Association marks a turning point,” Yuko’s statement concluded. “We now have a unified voice to strengthen the market, support honest players and ensure that Ukraine’s lubricant industry continues to develop on a competitive and sustainable basis.”

Related Topics

Europe    Latest Headlines    Market Topics    Region    Ukraine