The issue of Ukraine’s dependence on diesel imports

Abstract

This paper aims to present the current situation on the Ukrainian market of diesel fuel with particular regard to the risks that arise from its limited autonomy. The abovementioned market remains extremely sensitive for Ukraine – diesel is the most popular type of motor fuel among the inhabitants of this country. At the same time, the Ukrainian diesel market is not free from the effects of events involving Russia, which are quickly damaging its current liquidity. This seemed to be even more pronounced from the perspective of market events in 2019 and early 2020 that took place in relations between Ukraine, Russia and Belarus.

By analysing the Shannon–Wiener index for the Ukrainian diesel market, and the Gini coefficient for Ukraine’s import of this fuel, the author positively verifies the hypothesis that the high concentration of the share of diesel from Russia and Belarus remains a fundamental challenge for the security of the Ukrainian market of this fuel (52.4% in total). As a result of the study, the author concludes that the country should use all market opportunities and legal tools to minimise the clear impact of its eastern neighbour on the security of its diesel market.