Rent revenues from Ukrnafta for April made up UAH 649 mln
Rent revenues from Ukrnafta for April made up UAH 649 mln

For April, 2019, PJSC Ukrnafta paid UAH 649.2 mln in rent to the state and local communities’ budgets of all levels, 7.1% up against the similar indicator for April 2018 (UAH 606.6 mln). According to the rent sharing mechanism, enshrined in law, the oblasts, raions and local communities’ budgets received UAH 32.5 mln from this sum.

From the beginning of the year to the budgets of all levels Ukrnafta paid in total UAH 2.6 bln in rent, including UAH 130.3 mln to the local budgets. 

The biggest recipients of rent revenues from Ukrnafta traditionally remain the communities from Sumy, Ivano-Frankivsk and Poltava 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 April 2019

For January-April 2019

Sumy oblast

14.0

54.7

Ivano-Frankivsk oblast

7.2

28.5

Poltava oblast

4.9

22.1

Chernihiv oblast

3.2

12.9

Lviv oblast

2.6

9.9

Kharkiv oblast

0.5

1.8

Dnipropetrovsk oblast

0.08

0.4

Chernivtsi oblast

0.02

0.08

Total

32.5

130.3

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.

 

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