Boryslav Oil Company Halts Production After NSDC Sanctions

The Boryslav Oil Company has suspended hydrocarbon production following sanctions imposed by the National Security and Defense Council of Ukraine. President Volodymyr Zelensky introduced decade-long sanctions against the company, which operates at the Stynavske field in the Lviv region. The sanctions include asset freezes, cessation of trading operations, and halting financial obligations. The company reported 16 types of restrictive measures that came into effect on August 3, 2026. As a result of the sanctions, all wellheads have been switched to an idle mode, and counterparties, such as Ukrnafta, have ceased cooperation. Additionally, bank accounts have been blocked, and fuel supplies have been halted. The company warns of potential environmental risks due to the prolonged shutdown of wells, especially in water intake sanitary protection zones. The Boryslav Oil Company intends to challenge the legality of the sanctions, citing an active license for subsoil use until 2038. In the first half of 2026, the average daily production was about 43 tons of oil and 68,000 cubic meters of gas, while the company paid over 1.5 million UAH in taxes daily.

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