Local communities received rent revenues from Ukrnafta for February
Local communities received rent revenues from Ukrnafta for February

In February 2018, Ukrnafta paid UAH 530.2 mln in rent to the state and local communities. According to the rent sharing mechanism, which has come into force since the beginning of the year, the oblasts, raions and local communities’ budgets received UAH 26.5 mln.

The biggest recipients of the rent revenues were the communities from Sumy oblast (UAH 11.6 mln), Ivano-Frankivsk oblast (UAH 5.8 mln), Poltava oblast (UAH 4.1 mln) and Chernigiv oblast (UAH 2.5 mln).

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

Sumy oblast

11.6

Ivano-Frankivsk oblast

5.8

Poltava oblast.

4.1

Chernigiv oblast

2.5

Lviv oblast

2.1

Kharkiv oblast

0.4

Dnipropetrovsk oblast

0.07

Chernivetska oblast

0.02

Total

26.5

The rent sharing mechanism envisages that 5% of rent revenues go to the local budgets, while 95% - to the central public budget. 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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