Rent from Ukrnafta made up UAH 3.8 bln for 1H2019
Rent from Ukrnafta made up UAH 3.8 bln for 1H2019

For 1H2019 PJSC Ukrnafta paid in total UAH 3.82 bln in rent to the state and local budgets of all levels. That is up 4.7% against the plan. According to the rent sharing mechanism, enshrined in law, the oblasts, raions and local communities’ budgets receivedUAH 191.2 mln.

For June 2019, Ukrnafta paid UAH 547.7 mln in rent to the budgets of all levels, including UAH 27.4 mln to the local budgets.

In 1H2019, the biggest recipients of rent revenues from Ukrnafta were the communities of Sumy (UAH 81.0 mln), Ivano-Frankivsk (UAH 41.9 mln) and Poltava (UAH 31.2 mln) oblasts. 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 June 2019

For 1H2019

Sumy oblast

11.6

81.0

Ivano-Frankivsk oblast

6.1

41.9

Poltava oblast

4.2

31.2

Chernihiv oblast

2.7

18.8

Lviv oblast

2.4

15.0

Kharkiv oblast

0.4

2.6

Dnipropetrovsk oblast

0.05

0.5

Chernivtsi oblast

0.01

0.1

Total

27.4

191.2

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 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.