Ukraine: president signs law on customs clearance of biomethane

Ukrainian President Volodymyr Zelensky signed on 14 May 2024 Law No. 3613-IX amending the Customs Code, which enables customs clearance of biomethane transported by pipeline. The law (draft No. 9456) was passed by the Verkhovna Rada earlier that year – most sources indicate 20 March 2024 – and removed one of the formal barriers to exporting Ukrainian biomethane to the EU market.

What the law provides

The provisions introduce the rule that customs control and clearance of biomethane transported by pipeline are carried out in the same way as for natural gas. Previously biomethane had no customs procedure of its own, which in practice blocked its export. Export was permitted only for quantities of biomethane wholly produced in Ukraine by a resident, and only on condition of proving that the given batch meets the sustainability criteria.

To actually send biomethane to the EU, implementing acts were still needed. To launch exports, an implementing act of the Ministry of Finance will still be required, setting out the detailed procedure for clearing biomethane transported by pipeline.

Why Ukraine

Ukraine has large feedstock potential in agriculture and food processing and an extensive gas transmission and storage system with connections to Poland, Slovakia and Hungary. Biogas sector players argued that supporting exports could trigger investments valuable for the country's reconstruction and for Europe's energy security. Export to the EU, however, requires certification in line with the RED directive and registration in EU systems, including the Union Database (UDB).

Significance for the industry in Poland

Poland is a potential transit corridor for gas from Ukraine to the west and borders a country that in 2024 was announcing biomethane exports to the EU. For Polish producers this means possible price competition, but also shared challenges: sustainability criteria, guarantees of origin and the issue of double counting. For Polish network operators and trading companies, the rules for accepting imported biomethane into the system and for settling guarantees of origin are important.

What next

After the customs rules enter into force, the key elements will be: the implementing act, creation of a national register, issuing of sustainability certificates and connection to the European database. The first transactions will depend on the full launch of the mechanisms on the EU side and on how quickly Ukrainian producers complete certification. Polish gas traders should watch whether and when biomethane offers from the eastern direction appear.

What to look out for

Customs clearance is only one element of the chain. For biomethane to be sold in the EU as renewable, a batch must have a sustainability certificate, be registered in tracking systems and avoid double counting of guarantees of origin. Market commentators therefore stressed that the law was a necessary but insufficient condition. For Polish gas traders, the question of physical entry points and the availability of transmission capacity also matters.