A number of Ukrainian media have published calls for the use of the Ukrainian taxpayers’ money to extinguish Ukrnafta’s tax debt. Ukrnafta consider these statements to be deliberate manipulation.
The suggested solution foresees mutual repayment of the state’s debt to Naftogas of Ukraine, Naftogas to Ukrnafta, and Ukrnafta to the budget. Thus, the operation will be neutral budget-wise. Cabinet of Ministers’ consent is needed to implement these proposals.
Setlling the tax debt will enable the company to increase investments in oil and gas production and keep positive hydrocarbons production momentum that has been in place since the last year. Ukrnafta pays current taxes in full and has paid off part of the tax debt. At the same time, in 1H2019, the company’s allocations to serve the tax debt were 2.5 times bigger than capital investments.
Since beginning of 2019, Ukrnafta increased oil production by 4.3 % and gas production by 6.5 %. Over eight months of the current year, the company paid UAH 8.7 bln in taxes and is among top 5 taxpayers in Ukraine.