The Biofuel Law: What Energy Sector Operators Should Expect from Spring 2025

The Verkhovna Rada of Ukraine has passed a law on the mandatory use of liquid biofuel (biocomponents) in the transportation sector (No. 3769-IX dated June 4, 2024). The essence and consequences of the law are explained by Alina Potapovich, a member of the legal council of the “PEB” Association.

This law amends the following laws of Ukraine:

  1. The Law of Ukraine “On Alternative Fuels” (Bulletin of the Verkhovna Rada of Ukraine, 2000, No. 12, Art. 94 with subsequent amendments).
  2. The Law of Ukraine “On the Basic Principles of State Supervision (Control) in the Field of Economic Activity” (Bulletin of the Verkhovna Rada of Ukraine, 2007, No. 29, Art. 389 with subsequent amendments).

Essentially, the adopted law introduces a mandatory share of liquid biofuel (biocomponents) in the volumes of automotive gasoline. Starting from May 1, 2025, the content of liquid biofuel must be at least 5% (by volume) with an absolute measurement error of ± 1%.

This applies to all volumes of automotive gasoline sold from wholesale fuel distribution points and through retail trade, except for gasoline with an octane rating of 98 or higher, and gasoline supplied for the needs of the Ministry of Defense of Ukraine, the central executive authority implementing state policy in the field of state material reserves, and for the creation of minimum reserves of oil and oil products.

The changes will affect businesses engaged in the production and/or import of fuel and/or wholesale fuel trade.

Furthermore, starting from June 1, 2025, the liquid biofuel considered to meet the mandatory share must comply with sustainability criteria. The assessment of compliance with the liquid biofuel content in gasoline and its sustainability criteria will be the responsibility of the State Agency for Energy Efficiency. The procedure for administering the accounting of liquid biofuel content in motor fuel and alternative motor fuel, as well as its compliance with sustainability criteria, will be approved by the Ministry of Infrastructure.

Efforts to stimulate bioethanol production by introducing a law on its mandatory addition to gasoline in the domestic market have been regularly made in Ukraine since 2003. The adoption of this law brings Ukraine closer to EU standards, gives a boost to advanced bioethanol production, and promotes the country’s “green” transformation. These conclusions are drawn by experts from the Bioenergy Association of Ukraine.

One of the areas of activity of our Association is to support the “green course” in the energy sector. We will analyze the adopted changes and share their nuances with you in future publications.