Experts urge to expedite preparation of draft laws required to create oil stocks in Ukraine
Ukraine is still far from creating the legislative framework required to create oil stocks, although work in this area has begun even before Ukraine’s accession to the Energy Community and the results of this work didn’t go anywhere
, Energy Reforms Coalition experts said at the round table “Problems and prospects of creating oil stocks in Ukraine”.
The experts believe that creation of the minimum stocks of crude oil and/or petroleum products pursuant to Council Directive 2009/119/EC is one of the contemporary objectives of ensuring national security.
“Using instruments of political pressure on the Republic of Belarus (either directly or via Russian shareholders of Mozyr Oil Refinery), the Russian Federation can block two-thirds of gasoline and diesel fuel supply which the Ukrainian economy needs”, Hennadii Riabtsev said.
At the same time, experts note insufficiently effective work, low performance discipline and as a result, failure to achieve, by the required deadline, the overwhelming majority of Directive 2009/119/EC implementation objectives.
“The government’s activity in implementing Directive 2009/119/EC remains low. Despite clear goals, developed plans, existence of support from European partners and creation of a number of interagency working groups, insufficiently effective work, absence of demanding, low performance discipline, and reorganization of a number of institutions responsible for implementation of commitments have resulted in the failure to achieve the objectives for 2015-2016 by the required deadline”, DiXi Group Senior Analyst Taras Tkachuk emphasized.
Considering the foregoing, Energy Reforms Coalition experts deem it necessary to assign persons responsible for preparation of the draft laws On the Minimum Stocks of Oil and Petroleum Products and On Strategic Reserves.
FYI: Council Directive 2009/119/EC imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products (Directive 2009/119/EC) was adopted on 14 September 2009. It introduces mechanisms and procedures allowing to reduce risks, first of all for the transport sector and chemical industry, in the event of interruption or limitation of supply of crude oil and/or petroleum products.
Directive 2009/119/EC envisages adoption of proper laws, regulations and administrative provisions to ensure that the total oil stocks maintained at all times correspond, at the very least, to 90 days of average daily net imports or 61 days of average daily inland consumption, whichever of the two quantities is greater.
The round table was held as part of the project “Increasing the influence of civil society over monitoring and political dialogue concerning reforms in the energy and related sectors in the course of implementation of the Association Agreement”, co-financed by the European Union and Renaissance International Foundation.
