After the Sixth Administrative Court of Appeal revoked Ukrnaftoburinnya's special permit at the request of the State Service of Geology and Mineral Resources, the company was forced to stop producing natural gas and condensate.
Ukrnaftoburinnya is a state-owned company and has to transfer its net profit to the state, so the state bears losses from the suspension of the company's operations. Also, due to the suspension of production, there is no monthly rent payment.
On average, the company loses
47.3 million cubic meters of natural gas (more than one and a half million cubic meters per day);
5229 tons of condensate (almost two hundred tons per day).
If calculated in terms of money at current market prices, the profit from the sale of these hydrocarbons would have amounted to almost UAH 0.5 billion in one month.
Local and state budget losses (excluding personal income tax, unified social tax and military fee) amount to UAH 410.5 million per month. In particular, this includes UAH 190 million in rent, UAH 132.2 million in VAT, and UAH 88.2 million in income tax.
From January to November 2023, the company paid UAH 4.13 billion in taxes, and from December 2023 to June 2024, it could have paid another UAH 2.24 billion - this is also not the final figure, excluding personal income tax, unified social tax and military duty.
Thus, due to an unlawful court decision, the state is losing a valuable resource for energy independence and funds that should have been used for the needs of the Armed Forces of Ukraine.
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