Ukraine's State Service of Geology and Mines has suspended the subsoil extraction license of Boryslav Oil Company following sanctions by national security officials.
The decision to freeze license No. 1211 was published in agency order No. 375 on August 17, effectively halting operations at the Stynavske oil field in western Ukraine's Lviv Oblast. Under the order, the company is required to stop all subsoil activity at the site within 20 calendar days of the suspension.
The permit was originally issued on January 20, 1998, with an expiration date of 2038, covering the extraction of crude oil and dissolved natural gas at deposit depths ranging between 2,800 and 3,600 metres.
Sanctions and operational shutdown
The regulatory action follows ten-year sanctions imposed against LLC Joint Venture Boryslav Oil Company by Ukraine's National Security and Defense Council in early August. Company officials stated that they do not understand the grounds for the sanctions and have submitted a formal request for the decision to be reviewed.
Prior to the suspension, the energy producer maintained an active output at the site. During the first half of 2026, the company extracted approximately 68,000 cubic metres of natural gas and 43 tonnes of crude oil per day, while maintaining a workforce of 59 employees.
Environmental and water supply risks
Boryslav Oil Company warned that a prolonged and uncontrolled shutdown of its legacy flowing wells could create severe risks for local water resources. Specifically, the firm highlighted potential threats to subterranean aquifers connected to the Stryi water intake facility.
The Stryi intake serves as the primary source of drinking water for numerous urban centres across Lviv Oblast. A disruption at the facility could affect municipal supplies in Lviv, Drohobych, Truskavets, Stryi, Morshyn, and Stebnyk.
Ownership structure and financial performance
Headed by manager Yuriy Shklyar, LLC Joint Venture Boryslav Oil Company focuses primarily on crude oil extraction and generated substantial revenue prior to the sanction order. In 2025, net sales revenue reached 632.0 million Ukrainian hryvnias, including 343.86 million hryvnias from natural gas sales and 287.2 million hryvnias from oil sales, resulting in a net profit of 213.87 million hryvnias.
Corporate records in the LIGA360 business database show that Virgin Islands-registered Pelmarra Investments Ltd holds a 38.14 percent stake in the firm. Ukrainian state-controlled producer Ukrnafta owns 25.10 percent, while domestic companies Eventra and Tarius each retain an 18.38 percent share.
Although the company lists no ultimate beneficial owner, its corporate ownership structure connects to the Privat group. Offshore founders listed for Eventra and Tarius have been formally linked to Ukrainian businessmen Ihor Kolomoisky and Hennadiy Boholiubov.
Broader licensing disruptions in Ukraine
The enforcement action against Boryslav Oil Company reflects broader regulatory interventions affecting Ukrainian hydrocarbon deposits in recent years. In 2023 and 2024, extraction at the Sakhalinske oil and gas condensate field was halted following the revocation of a license held by Ukrnaftoburinnia, an entity previously affiliated with Kolomoisky before being transferred to Ukrnafta management.
Similar sanction-related suspensions disrupted operations for Smart Energy in 2023 and 2024 at the Vasyshchivske and Svystunivsko-Chervonolutske fields. Further license freezes were applied to Smart Energy's Mekhedivsko-Holotovshchynske, Svyrydivske, and Vasyshchivske deposits starting in November 2024.
