News

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Ukrnaftoburinnya channeled UAH 23.3 million of rent payments to local budgets for six months of 2020

News / 31.07.2020

During January-June 2020, the total amount of rent paid by PrJSC MC Ukrnaftoburinnya for the use of subsoils and production of oil, gas, and condensate comprised UAH 465.1 million. Out of this amount, UAH 23.3 million was received by the local budgets, including:

- UAH 9.3 million – the budget of the Kharkiv region;

- UAH 9.3 million – the budget of the Krasnokutsk district;

- UAH 4.7 million – the budgets of the Oleksiyivka, Kachalivka and Kytchenkivka rural councils.

“The development of the private oil and gas industry in Ukraine contributes to the welfare of local communities in the places of production activity. UNB fully meets its financial obligations and channels rent payments to budgets of all levels. One of the Company's priorities today is to maintain its leading position in terms of production volume. We hope the state promotes legislative initiatives that will help regain the industry's investment attractiveness as a whole and provide a solid foundation for continued successful hydrocarbon production in Ukraine,” Vitaliy Dorohan, Deputy CFO of PrJSC MC Ukrnaftoburinnya, stated.

As a reminder, on January 1, 2018, the Law of Ukraine on Amendments to the Budget Code of Ukraine Regarding the Transfer of Rent Payment for the Use of Subsoil for the Extraction of Oil, Natural Gas and Gas Condensate came into force. It facilitated the decentralization of rent payments.

Hence, 95% of rent payments made by the Company are transferred to the state budget, while the remaining 5% go to the regional, district and rural budgets according to the location (place of production) of natural resources.

Contacts

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