Local budgets received rent revenues from Ukrnafta for Q1’2018
Local budgets received rent revenues from Ukrnafta for Q1’2018

For Q1, 2018, Ukrnafta paid UAH 1.76 bln in rent to the state and local communities’ budgets of different levels. According to the rent sharing mechanism, enshrined in law, the oblasts, raions and local communities’ budgets received UAH 88 mln.

The biggest recipients of the rent revenues were the communities from Sumy oblast (UAH 38 mln), Ivano-Frankivsk oblast (UAH 19.4 mln), Poltava oblast (UAH 13.6 mln) and Chernigiv oblast (UAH 8.6 mln).

5% of rent revenues for Q1’2018 paid to budgets of oblasts, raions and local communities, mln UAH

Sumy oblast

38.0

Ivano-Frankivsk oblast

19.4

Poltava oblast.

13.6

Chernigiv oblast

8.6

Lviv oblast

6.8

Kharkiv oblast

1.3

Dnipropetrovsk oblast

0.2

Chernivetska oblast

0.07

Total

88.0

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 preliminary estimates, Ukrnafta will pay circa UAH 5.5 bln in rent in 2018, with about UAH 270 mln in rent revenues going to the oblasts, raions and local communities where the company operates.

 

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