The Law on Mandatory Use of Liquid Biofuels in the Transport Sector Entered Into Force

The Law of Ukraine No. 3769-IX “On amendments to certain laws of Ukraine on the mandatory use of liquid biofuels (biocomponents) in the transport sector” (“Law on use of liquid biofuels”) was adopted by the Verkhovna Rada on 4 June 2024 and entered into force on 30 June 2024. The Law on use of liquid biofuels introduces amendments to the Law of Ukraine No. 1391-XIV dated 14 January 2000 “On alternative types of fuels”.

Requirements

Mandatory content

The Law on use of liquid biofuels establishes that from 1 May 2025 a mandatory share of liquid biofuels (biocomponents)[1] is at least 5% (possible error of ± 1 %) in all volumes of motor petrol sold from wholesale and retail fuel outlets.

The requirement does not apply to:

• petrol with an octane number of 98 and above;
• petrol supplied for the needs of the Ministry of Defence, the State Reserve Agency of Ukraine[2]and for the creation of minimum reserves of oil and petroleum products[3].

Reporting obligations

Business entities engaged in:

• the production and/or
• import of fuel, and/or
• wholesale trade in fuel

shall annually provide the record administrator with information on:

• the actual content of liquid biofuels in the volumes of motor petrol for the reporting calendar year;
• information on the compliance of liquid biofuels with the sustainability criteria based on copies of certificates of compliance with the sustainability criteria issued by the voluntary certification scheme.

This obligation is effective from 1 January 2026, and business entities shall report no later than 1 July of the year following the reporting calendar year.

Sustainability criteria

Liquid biofuels and biogas[4] intended for use in the transport sector must meet the sustainability criteria. Business entities engaged in the production and sale of liquid biofuels and biogas intended for use in the transport sector are required to confirm that these types of biofuels meet the sustainability criteria.

The procedure for confirming compliance with the sustainability criteria of liquid biofuels and biogas intended for use in the transport sector is yet to be approved by the Cabinet of Ministers of Ukraine.

Information on the compliance of liquid biofuels with sustainability criteria is to be submitted:

• to an independent auditor;
• within the timeframe set by the voluntary certification scheme, according to which a certificate of compliance with the sustainability criteria is acquired.

The information should include information on measures taken:

• to protect soil, water and air;
• to restore degraded land; and
• to avoid excessive water consumption in water-scarce areas.

From 1 June 2025, business entities engaged in the production and sale of liquid biofuels intended for use in the transport sector are required to provide a certificate of compliance of liquid biofuels with the sustainability criteria for each batch of such fuel.

The Law on use of liquid biofuels provides sustainability criteria for the land plots where raw materials for the production of liquid biofuels for transport sector are collected and grown Article 85.

Liability

The Law on the use of liquid biofuels provides for liability for violation of requirements regarding the use of liquid biofuels in the transport sector (see Table 1. Liability for violation of requirements regarding mandatory use of biofuels in the transport sector).

Table 1. Liability for violation of requirements regarding mandatory use of biofuels in the transport sector