December 13, 2019

Sulfur Reduction Continues in the CIS with the EEU Leading the Way

Stratas Advisors

This excerpt is from a report that is available to subscribers of Stratas Advisors’ Global Fuel Specifications service.

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Sulfur reduction along with the tightening of vehicle emission standards remain the main priorities of the Russia & CIS region, which aims to align its standards with those of the EU, especially in Russia’s case as it is a major fuel exporter to the EU. In the previous report, Stratas Advisors discussed historical, political and legislative developments with regards to the transportation sector in the region. An outlook in relation to fuel quality and vehicle emission requirements was also given. Similarly, this report will also provide updates on changes to fuel quality and vehicle emissions legislation/ standards that are currently in force as well as future changes. In addition, the full report reflects on Stratas Advisors’ research and discussions with the industry on the quality of marketed fuel, usage of blending components and the age limit of vehicles. This report does not cover economic developments.

The full report covers fuel quality and vehicle emissions developments in the following 12 countries: the Eurasian Economic Union (EEU) which includes members of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, and other countries Azerbaijan, Georgia, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.

Developments since the Previous Report

Since the previous report, fuel spec and/or vehicle emission changes occurred for the countries of Georgia, Kazakhstan, Moldova, Russia, Ukraine and Uzbekistan, as well as in the EEU. Since January 2019, Georgia moved to a lower sulfur limit for diesel from 100 ppm to 50 ppm, which will further reduce to 10 ppm starting January 2021. A maximum sulfur limit of 10 ppm was introduced for both diesel and gasoline in Russia in 2016 and Ukraine since January 2018, along with Kazakhstan which moved to 50 &10 ppm sulfur limits in both fuels also since January 2018.

In addition, Uzbekistan introduced a new technical regulation from May 2018 requiring a 500 ppm sulfur limit in gasoline and diesel. Furthermore, based on the newly adopted decree of the President of Uzbekistan “On approval of the concept of environmental protection of the Republic of Uzbekistan until 2030”, a new timeline for the transition from high sulfur grade to lower sulfur has been introduced. As of Jan. 1, 2022, import and sales of fuels with sulfur content higher than 150 ppm for gasoline and higher than 350 ppm for diesel fuel will not be allowed. Furthermore, as of Jan. 1, 2023, the same will apply for both fuels with sulfur content higher than 50 ppm. Most recently, Moldova transposed the EU Directive 98/70/EC on fuel quality and introduced a 10 ppm sulfur limit for gasoline and diesel in February 2019.

As for the remaining EEU countries of Armenia and Kyrgyzstan, the table below reflects on the transposition timelines of the EEU Technical Regulation TS 018/2011 “On the security of vehicles” for Armenia and EEU Technical Regulation TS 013/2011 “On requirements for automotive and aviation gasoline, diesel and marine fuel, jet fuel and heating oil” for Kyrgyzstan. Armenia already enforced EEU Technical Regulation TS 013/2011 from Jan. 2, 2016 after becoming a member of the EEU on Jan. 2, 2015, although the 10 ppm sulfur limit for diesel was only implemented in 2017.

Based on amendments to the EEU Technical Regulation TS 013/2011 approved on Dec. 2, 2015, Kyrgyzstan was permitted to sell gasoline corresponding to classes outside of Class 4 and 5 (K4 and K5 with sulfur 50 ppm and 10 ppm max respectively) until Dec. 31, 2017. However, Kyrgyzstan requested the Council of the EEU for the postponement of this deadline three times, the first time until Jan. 1, 2019, then until Aug. 12, 2019 and most recently until Aug. 12, 2021. In addition, the amendments also laid down provisions on sulfur reduction timelines for Armenia and Kazakhstan: Armenia switched to K5 (sulfur 10 ppm, max) and Kazakhstan phased out classes lower than K4 on time according to the schedule on Dec. 21, 2017.

Transposition Timelines of the EEU Legislation in Relation to Fuel Quality and Vehicle Emissions in Armenia and Kyrgyzstan

Technical Regulations

Armenia

Kyrgyzstan

EEU Technical Regulation TS 013/2011 as amended “On requirements for automotive and aviation gasoline, diesel and marine fuel, jet fuel and heating oil”

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Aug. 16, 2021

EEU Technical Regulation TS 018/2011 “On the security of vehicles”

Jan. 2, 2020
(60 months’ transition) with transitional period until Jan. 2, 2021 for products, which were not previously subject to national Armenian certification and until Jan. 2, 2022 for products certified according to national Armenian requirements.

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Source: Stratas Advisors, EEU, December 2019

 
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