Ukraine

Summary of national biofuels policy and strategy - updated 18th July 2008

Biofuels substitution targets

Targets: informal targets 2% ethanol in 2008, 5% by 2010 and 10% in 2011. No biodiesel target.

Date set: official policy not yet implemented

Note: Ukrainian biofuels industry and feedstock production is more strongly influenced by the EU market rather than domestic demand.

National policy and trends in biofuels crop development

The Ukraine has significant potential for increasing agricultural production with current yields 40% of the EU-average.  Area under cr0ps and yields are increasing.

Domestic biodiesel production is limited by low national demand and strong export market into the EU. The EU imports 40% of Ukraine’s exports of rapeseed production. Rapeseed harvest in 2008 is expected to double to over 2 million tonnes from 1 million in 2007. Sunflower sown area has increased from 3.4 to 4 million hectares in the same period.

Deputy Agriculture Minister Oleksander Shevchenko stated in April that the Ukraine aims to boost annual rapeseed production to at least 7 million tonnes from about 3 million hectares.

Grains and sugar beet are the basis for a new ethanol industry with slow growing domestic demand. Government aims to ensure food safety through a State Food Fund and reserve up to 14% of production for food.

Sources:

Russian National Biofuels Association: http://www.biofuels.ru/