Boryslav Petroleum Company has halted oil and gas extraction at the Stynavske field in Lviv Oblast following sanctions imposed by Ukraine's National Security and Defense Council, according to a statement on the company website.
Following the sanctions, national oil company Ukrnafta terminated production cooperation and product receipts from Boryslav Petroleum Company, while the GTS Operator of Ukraine stopped transporting its gas. These actions forced the company to perform an emergency shutdown of its gusher wells.
Boryslav Petroleum Company warned that an extended, uncontrolled shutdown of old wells creates risks for aquifers linked to the Stryi water intake. The intake provides drinking water to six cities in the region, including Lviv, Drohobych, Truskavets, Stryi, Morshyn, and Stebnyk.
Water Supply Risks and Operations
Before the sanctions took effect, the enterprise extracted about 68,000 cubic meters of gas and 43 tonnes of oil per day during the first half of 2026. The company currently employs 59 workers.
Company management stated it does not understand why sanctions were imposed and requested a formal review of the decision.
Yuriy Shklyar, general director of Boryslav Petroleum Company, said the firm understands the broader rationale of state sanction policy and does not question it. However, Shklyar said the sanctions against the company are unfounded and harmful to state interests and regional public safety. He explained that drinking water aquifers lie directly beneath the shut wells and stated that old gusher wells require a planned, controlled shutdown with sufficient execution time. Shklyar added that the company appealed to officials ranging from the president to regional authorities to allow a managed shutdown.
Company Ownership and Finances
Data from the LIGA360 business registry shows that Virgin Islands registered Pelmarra Investments Ltd holds a 38.14 percent stake in Boryslav Petroleum Company. Ukrainian state enterprise Ukrnafta holds 25.10 percent, while Eventra and Tarius each hold 18.38 percent. The main operational focus of the business is crude oil extraction.
Although no ultimate beneficial owner is officially listed, the ownership structure indicates links to the Privat group. Offshore founders of Eventra and Tarius were previously connected to the business group of Ihor Kolomoisky and Hennadiy Boholyubov. Yuriy Shklyar serves as the head of Boryslav Petroleum Company.
In 2025, the company generated net sales revenue of 632.0 million hryvnias, which included 343.86 million hryvnias from gas sales and 287.2 million hryvnias from oil sales. Net profit for that year reached 213.87 million hryvnias.
Sanction Effects on Energy Sector
Similar regulatory and sanction actions have affected other Ukrainian energy assets in recent years. In 2023 and 2024, operations stopped at the Sakhalinske oil and gas condensate field after authorities canceled the special permit for Ukrnaftoburinnya, an entity affiliated with Ihor Kolomoisky that was later placed under Ukrnafta management.
During 2023 and 2024, sanctions also suspended licenses held by Smart Energy at the Vasyshchevske and Svystunivsko-Chervonolutske fields. Further suspensions affected the Mekhedivsko-Golotovshchynske, Svyrydivske, and Vasyshchevske fields starting in November 2024.
