The state, problems and prospects of modernizing the oil refining branch of Ukraine were discussed during the hearings in the Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety

Information Department of the Verkhovna Rada of Ukraine Secretariat
07 October 2013, 16:51

 Reporting on the state of affairs in the branch, the Chair of the subcommittee on oil industry and petroleum products supply Ihor Vasiunyk noted that fuel and energy complex of the state is characterized by high level of wear of fixed assets; insufficient investment into development of branches; and imperfect regulatory support.

According to him, large amount of import helped prevent resource shortage on the domestic oil market. However, it has resulted in the decrease of work efficiency of Ukrainian refineries that cannot compete with suppliers of petroleum products from the CIS and Europe.   

I.Vasiunyk drew attention to the fact that today Ukraine lacks the program of support to oil refining branch that would stipulate taxation privileges for legal persons-owners of refineries that secure modernization of refining capacity.

The necessity to determine reliable oil sources and diversify oil supply routes was discussed.

During the hearings several plans for the nearest future were outlined. In particular:

elaborate and approve the Strategy of reconstruction and modernization of oil refining branch and introduce European environmental norms in Ukraine;

grant state support to projects oriented on reconstruction and modernization of oil refining branch of Ukraine;

grant refineries a remission of taxation for the period of reconstruction and modernization of production, but not more than for two years. 

Summing up, I.Vasiunyk noted that all the proposals made by participants of hearings will be examined in the Committee and considered when elaborating the respective recommendations.