The Ministry of Energy has determined who will control the availability of strategic oil and oil products in Ukraine
31 January 08:49
The Ministry of Energy of Ukraine has issued an order to implement the Law of Ukraine “On Minimum Oil and Oil Products Reserves” and appointed Market Operator JSC responsible for administering the electronic reporting system for minimum oil and oil products reserves. This is reported on the company’s website, Komersant ukrainskyi reports
The purpose of this electronic system is to create a transparent mechanism for monitoring the formation, storage, use and exchange of data on strategic oil and oil products reserves in Ukraine.
Why it is important and what it means for the market
Ukraine is integrating into the European energy space, and the introduction of an electronic reporting system is one of the key steps to ensure transparency and compliance with EU best practices. In particular, similar systems are already successfully operating in EU countries such as Germany, France, Poland and the Czech Republic.
The monitoring system will help to ensure
– prompt control over the level of minimum stocks;
– quick response to possible risks of shortages of petroleum products;
– harmonization with European requirements for energy supply security.
According to Market Operator JSC, the first stage will involve consultations with market participants to take into account their needs and ensure a smooth transition to the new reporting model.
The administrator of the electronic reporting system explained that the development and implementation of the system will take place in several stages:
– formation of the regulatory framework for its operation;
– defining data submission formats and mechanisms of interaction with business;
– testing the platform with the involvement of key market participants.
“We are focused on creating an effective mechanism that will ensure market stability and compliance with European standards,” assured Oleksandr Havva, CEO of Market Operator JSC.
According to him, the Market Operator is open to cooperation with market participants, experts and international partners to create a transparent, efficient and modern minimum stocks management system.
What does the law “On Minimum Stocks of Oil and Oil Products” provide for?
This law was adopted on November 21, 2023. It entered into force 12 months later, namely on December 24, 2024.
The document defines the legal, organizational and economic framework for the creation and operation of a system of minimum stocks of oil and oil products in Ukraine and regulates relations in this area. The law aims to increase the level of energy security of Ukraine and ensure continuous supply of oil and oil products to the domestic market of Ukraine in the event of a crisis on the oil and oil products market.
What regulates the monitoring of petroleum products
In mid-December last year, the Government approved the Procedure for Monitoring the Quality, Safety and Volumes of Oil Products in Ukraine.
This decision, as noted, provides for the extension of European requirements to the oil and oil products market in terms of monitoring the balance (security of supply), quality and safety.
The government decision approved 3 procedures:
– monitoring the quality and safety of oil products in Ukraine;
– monitoring of volumes of oil, oil products and liquefied gas on the oil market;
– operation and maintenance of an electronic reporting system, i.e. reports.
This system consists of an electronic platform and a database of minimum stocks of oil and oil products. It will be administered by Market Operator JSC.