Between January and June 2020, the total amount of rent paid by PrJSC MC Ukrnaftoburinnya for the use of subsoil for oil, natural gas and gas condensate production amounted to UAH 465.1 million. Local budgets received UAH 23.3 million of this amount, including:
- UAH 9.3 million to the regional budget of Kharkiv region;
- UAH 9.3 million - to the budget of Krasnokutskiy district;
- UAH 4.7 million - to the budgets of Oleksiyivka, Kachalove and Kitchenkivske village councils.
"The development of the private oil and gas industry in Ukraine contributes to the improvement of the welfare of local communities in the areas where such enterprises operate. UNB fulfills its financial obligations in full and sends rent payments to the budgets of all levels. One of the Company's top priorities today is to maintain its leading position in terms of production. We look forward to stimulating legislative initiatives from the government that will help restore the investment attractiveness of the industry as a whole and provide a solid foundation for continued successful hydrocarbon production in Ukraine."
said Vitaliy Dorogan, Head of the Financial Department of PrJSC MC Ukrnaftoburinnya.
On 1 January 2018, the Law of Ukraine "On Amendments to the Budget Code of Ukraine on the Transfer of Rent for the Use of Subsoil for the Extraction of Oil, Natural Gas and Gas Condensate" came into force, which facilitated the decentralization of rent.
Thus, 95% of the total amount of the Company's rent is credited to the state budget, and the remaining 5% is credited to the regional, district and village budgets at the location (place of extraction) of natural resources.
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