For five months rent from Ukrnafta made up nearly UAH 3.3 bln
For five months rent from Ukrnafta made up nearly UAH 3.3 bln

For May, this year, PJSC Ukrnafta paid UAH 668.9 mln in rent to the state and local communities’ budgets of all levels, 6.0% up against the similar indicator for May 2018 (UAH 631.2 mln). According to the rent sharing mechanism, enshrined in law, the oblasts, raions and local communities’ budgets received UAH 33.4 mln from this sum.

For five months to the budgets of all levels Ukrnafta paid in total UAH 3.28 bln in rent, including UAH 163.8 mln to the local budgets. 

The amount of rent to the local budgets depends on the volume of hydrocarbons production in the region. The communities usually fund local infrastructure and social projects with rent revenues.

5% of rent revenues to budgets of oblasts, raions and local communities, mln UAH

 

For May 2019

For January-May 2019

Sumy oblast

14.7

69.4

Ivano-Frankivsk oblast

7.2

35.8

Poltava oblast

4.9

27.0

Chernihiv oblast

3.2

16.1

Lviv oblast

2.8

12.7

Kharkiv oblast

0.4

2.2

Dnipropetrovsk oblast

0.06

0.4

Chernivtsi oblast

0.02

0.1

Total

33.4

163.8

The rent sharing mechanism envisages that 95% of rent revenues go to the central public budget, while 5% – to the local budgets. The local rent revenues are split further with 2% allocated to the raions and 3% to the oblast and local communities where companies produce hydrocarbons. Thus, the rent sharing mechanism allows local communities to receive share of revenues from production of oil and gas.

According to the annual plan, in 2019 Ukrnafta is expected to pay UAH 7.3 bln in rent, with about UAH 365 mln in rent revenues going to the oblasts, raions and local communities where the company operates.