
Technical Regulation on Oil and Gas Condensate Requirements for Refineries: First Draft Under Discussion

A discussion of the first edition of the Technical Regulation on Requirements for Oil and Gas Condensate for Oil Refining Enterprises was recently held with participation from project teams of PJSC "UKRNAFTA" and State Fuel Company "MASMA".
The draft Technical Regulation introduces tolerance intervals for the physicochemical properties of oil and gas condensate. These standards aim to:
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Harmonize product quality requirements;
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Adapt quality parameters to refining needs;
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Minimize losses during transportation.
Unified Quality Passport System
The document proposes the implementation of standardized quality passport forms for crude oil and condensate. These forms will:
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Enable clear identification of tanks or other technological containers from which excise tax accounting for hydrocarbon raw materials begins;
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Ensure compliance with the new Technical Regulation;
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Align with the Law of Ukraine on Minimum Reserves of Oil and Oil Products.
Harmonized Definitions and Customs Classification
The draft also introduces clear and harmonized definitions for “oil” and “gas condensate,” aligned with the Explanatory Notes to the Ukrainian Classification of Goods for Foreign Economic Activity, as approved by the State Customs Service of Ukraine (Order No. 256, dated July 14, 2022).
Technical specifications for physicochemical indicators will allow for:
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The correct application of the zero excise tax rate on hydrocarbon raw materials falling under the UKT ZED commodity code 2709 (Petroleum and oils obtained from bituminous minerals, crude), specifically:
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2709 00 10 00 — Natural gas condensate
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2709 00 90 00 — Other (oil)
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Reducing Administrative Barriers and Supporting Refining
The adoption of this Technical Regulation will:
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Prevent customs officers from reclassifying unprocessed hydrocarbons into “excise” tariff categories (e.g., 2710 12, 2710 19) intended for refined products;
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Remove technical and administrative barriers to the import of crude hydrocarbons;
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Stimulate domestic oil refining;
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Strengthen Ukraine’s energy independence;
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Support the production of higher value-added products.
This initiative marks a crucial step toward modernizing Ukraine’s oil and gas sector through transparent regulation, international harmonization, and strategic support for refining capacity.