KIEV, Nov. 12 - Ukraine's Lysychansk Oil Refinery (LINIK) can only operate effectively if it is allowed to refine oil on a give-and-take basis and if Ukraine levies moderate import duties on fuel, Igor Pavlov, vice president for downstream at controlling shareholder Rosneft, said at the Petroleum Ukraine-2013 conference in Kiev on Tuesday.

"The government of Ukraine needs to set macro-conditions that would make operation of the refinery mutually beneficial," Pavlov said.

In addition, the government must do more to interdict illegal fuel imports and impose strict quality controls to ensure that fuels comply with Euro 4 and 5 standards.