For September Ukrnafta paid UAH 721 mln in rent
For September Ukrnafta paid UAH 721 mln in rent

For September, 2018, PJSC Ukrnafta paid UAH 721.0 mln in rent to the state and local communities’ budgets of different levels. The oblasts, raions and local communities’ budgets received UAH 36.0 mln from this sum, according to the rent sharing mechanism, enshrined in law.

From the beginning of the year the rent from the company to the budgets of all levels made up UAH 5.7 bln, including UAH 285.2 mln to the local budgets.

TOP 3 recipients of rent revenues are traditionally the same communities from Sumy, Ivano-Frankivsk and Poltava oblasts.

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

 

For September, 2018

For 9 months, 2018

Sumy oblast

14.8

122.3

Ivano-Frankivsk oblast

8.5

63.9

Poltava oblast

5.8

43.2

Chernigiv oblast

3.5

27.9

Lviv oblast

2.9

22.7

Kharkiv oblast

0.6

4.4

Dnipropetrovsk oblast

0.05

0.7

Chernivetska oblast

0.02

0.2

Total

36.0

285.2

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 recent estimates, Ukrnafta will pay circa UAH 6.4 bln in rent in 2018, with about UAH 320 mln in rent revenues going to the oblasts, raions and local communities where the company operates.