Restarting Fuel Retail: Challenges and New Opportunities

In March 2023, the Ukrainian fuel retail market underwent significant changes that require detailed analysis. Elena Borisova, CEO and owner of the Gastro Family restaurant chain, believes that one of the biggest challenges for companies is their underestimation of risks. "The biggest mistake companies are still making is hoping that nothing will happen to them," she stated in an interview.

At the beginning of March, the Ukrainian hryvnia faced pressure due to the geopolitical situation, leading to the dollar's exchange rate rising to 44.16 UAH. The official exchange rate at the start of the month was 43.1 UAH/USD, but by March 13, it reached its peak. According to Hanna Zolotko, director of treasury operations at Unex Bank, the situation stabilized closer to the end of the month when the National Bank of Ukraine allowed the hryvnia to devalue by 2%.

Yuriy Krokhmal, sales director at Avangard Bank, explained that against the backdrop of active currency sales by the regulator, the interbank market stabilized within the corridor of 43.7−43.95 UAH/USD. "The regulator still has enough international reserves to meet all market demand," he added.

Simultaneously with these economic changes, Ukraine introduced a 10% duty on the export of rapeseed and soybeans, which sparked disputes among agricultural producers. Spanish processors of oilseeds complain about the dumping of Ukrainian oil on the EU market, claiming that this has led to a loss of their competitive advantages. Exporters note that after the introduction of duties, Ukraine lost more revenue than it earned in foreign markets.

The mineral water producer Morshynska, part of IDS Ukraine, is also not standing aside from changes in the market. The company has started producing black and green tea at its plant in Morshyn. Whether the new product can compete with brands like Nestea and Fuzetea remains to be seen.

In a conversation with Elena Borisova, who manages a restaurant chain that includes establishments such as Mushlya, BPSH, Bilyi Nalyv, Oxota Na Ovets, and Kanapa, she shared her thoughts on the challenges facing the market. "Restarting old gas stations requires not only technical changes but also a deep understanding of the market," she noted, emphasizing the importance of adapting to new conditions.

Sabina Obukhova, PR director of the UPG group of companies, added that integrating new gas stations into a large network is a complex process that requires not only updating equipment but also changes in customer service approaches.

In the context of the war in the East and the blocking of financial assistance from the EU, Ukrainian companies must be prepared for new challenges. Hanna Mikulitska, managing director of SAP Ukraine, pointed out that cyberattacks have become a matter of survival for businesses. "Companies must be ready for all possible risks, rather than relying on luck," she emphasized.

Thus, the Ukrainian fuel retail sector and other industries face serious challenges that require not only technical solutions but also a strategic approach. A successful restart of old facilities can become an opportunity for growth if companies can adapt to the new market conditions.