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Victor Marchan, Gutovska & Partners Associate, on Abolition of Obligatory Registration of Liquid

On September 22, the Parliament adopted in first reading the law to amend Article 8 of the Law "On alternative fuels" which provides for the abolition of the requirement of compulsory state registration of entities engaged in business activities of production and storage of liquid biofuels and biogas. The bill was passed in accordance with paragraph 67 of the Action Plan for deregulation of economic activities, approved by Cabinet of Ministers of Ukraine. One of the declared purposes of the Plan is to ensure favorable conditions for business in the area of oil, gas, mineral resources and power.

By eliminating this bureacratic obstacle, the legislator intends to facilitate the conditions of doing business for organizations that produce liquid biofuels, biodiesel, bioethanol, butanol fuel, pure oils and other synthetic fuels made from biomass. So if the bill passes second reading, another red tape impediment for producers of alternative fuel will become history.

It should be noted that European legislation does not set requirements for mandatory state registration of entities engaged in the production of biofuels. The guiding principle of European law in this area is to dispose of any unfounded bureaucratic procedures relating to registration, certification and licensing in the field of alternative sources. In particular, Renewable Energy Directive imposes on member states of the European Union the duty to apply transparent, non-discriminatory and proportionate rules for registration, certification and licensing, as well as apply plain administrative procedures for such enterprises.

As Ukraine is actively integrating into the European community, one of the main steps which should be made in this direction - is harmonization of our national law with european, and effective implementation of the deregulation policy.


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