Ukrainian Oil & Gas Association (NAU) summarized achievements of the 2018 year and agreed on plans for 2019

The 5th of December Ukrainian Oil & Gas Association (NAU) had the annual general meeting of the participants were the results of the 2018 year were discussed and agreed on the plans and priorities for 2019. Association reported key achievements of the 2018 year:

• the strongest position against any restriction of the import of the oil products to Ukraine, that`s prevents the risk of the market destabilization, fuel deficit and growth of the prices for the oil products;
• cooperation with Kyiv city administration on the agreed program of fighting with the illegal Petrol/LPG sites and further development of similar programs in other regions of Ukraine
• further cooperation and signing of the memorandum with the Antimonopoly Committee of Ukraine
• development, professional discussion, and alignment on the state low-level necessary changes and the complex solution to prevent potential tax avoidance activities on the fuel market. In a particular, the Parliament of Ukraine vote for the Law #9260 “Regarding the agreed changes at the Tax Code of Ukraine and other regulations to improve administration and reviewing of relevant taxes” that includes:

• implementation of the licenses for the companies that’s are producing, storing and selling of the oil products both wholesale and retail starting from 1st of July 2019;

• implementation of the changes in the automated electronic system of the fuel and other oil products control (SEARP) regarding oil products accounting at excise tax warehouses starting from 1st of July 2019;

• implementation of the special meter for excise tax warehouses to control the quantity of the oil products;

• improvement of the control on jet fuel usage.

• active participation of the Law drafting regarding the minimal stock level of oil products on the country level by lobbying of 100% financing by the state budget including the transfer of the excise tax and without increasing of the tax rates;
• memorandum signed with USAID Financial Sector Transformation Project regarding the experience exchange and cooperation of drafting of the Instruction of transportation, storing and accounting of oil products;
• constructive participation in the drafting of the Law regarding biocomponents usage in motor fuels in Ukraine;
• development of the technical regulations for the liquefied gas regarding the separate characteristics for autogas, industrial and households usage;
• constructive participation in the drafting of the technical regulations regarding jet fuels;
• participation in a workgroup with the largest Oil and Gas Association in EU Fuels Europe, National Oil Industry Associations:

• sharing in national and industrial media Fuels Europe strategy regarding oil and gas fuel industry evolution “Vision 2050”

• consolidation of the information regarding EU fuel regulations;

• the assistance of alignment Ukrainian fuel regulations with of the EU regulations.

• leading the information and educational media company regarding retail fuel pricing;
• talents acquisition for the Association with the valuable experience from business and government sectors.

As with previous 9 years in Oil and Gas industry, in 2019 Ukrainian Oil & Gas Association will continue to promote and advocate by all available legal means competition support and development of oil and gas market, cooperation with law enforcement, regulator and administrative authorities on government and municipally levels regarding fighting with the illegal sector of the market, constructive cooperation with legislative and executive authorities regarding the improvement of Ukrainian regulations by implementation of the world best practices. Ukrainian Oil & Gas Association will advance the market economy principles, principles of open market trade and improving the ecological quality of the fuel. Association aims to have maximum focus on customers, consumer protection by providing the high-quality oil products that meet the highest applicable standards and regulations as well as following the principals, adherence to the principles of mutual trust, reliability, decency, and business partnership in the relationship between market operators and customers.

Ukrainian Oil & Gas Association is the club of select participants who are interested in a civilized and competent approach to the development of their operations and the oil and gas market in general. Currently, the Association comprises 13 largest wholesale, retail, production companies both Ukrainian and international, state and privately owned such as WOG, OKKO, Shell, AMIC Ukraine, Socar, KLO, Parallel, SunOil, Glusco, Gaztron networks of fuel stations, national production company UkrGasVydobuvannya, and wholesale suppliers CentrNaftogazpostach and BNK-Ukraine representative office.