The Government Regulation and Support of Synthetic Liquid Fuels Production in Ukraine

Abstract

The article proves that today motor fuels is an important component of both energy and national security of any country in the world, since it provides transport and equipment with the necessary energy resource. After the invasion of the territory of Ukraine by the armed forces of the russian federation and the destruction caused by shelling and hostilities of a number of oil and gas processing plants, it is necessary to restore or create a new production of motor fuels on the country’s own raw material base as soon as possible. The only energy resource that can partially meet Ukraine’s needs for motor fuels through the country’s own production is coal and lignite. The establishment of the production of synthetic liquid fuels (SLF) from coal and lignite in the regions of Ukraine will help strengthen the country’s energy security, and national security in particular. At the same time, the creation and development of SLF production requires proper government support and regulation. The aim of the study is to determine the features and directions of improving government regulation and supporting the production of SLF in Ukraine. Based on the carried out study, it is proved that the lack of both production and market of synthetic analogues and components of liquid motor fuels in Ukraine determines that the regulatory field of enterprises for the production of SLF is represented by the current regulatory framework for economic relations in the sphere of oil and oil products turnover. Therefore, it is highly likely that the development of SLF production in Ukraine will take place in the regulatory field, which does not take into account the specifics of new industries. This inconsistency can create undesirable additional barriers to their entry into the national market of petroleum products. It is recommended to allocate synthetic analogues of motor fuels into a separate commodity group, for which it is advisable to establish a special excise tax rate and other preferences that can provide sufficient investment flow for the creation of SLF production facilities.

Keywords

• national security
• energy security
• fuel
• motor fuels
• liquid fuels
• synthetic fuels
• manufacturing