Ukrnafta’s rent made up factually UAH 2 bln for 1Q2019
Ukrnafta’s rent made up factually UAH 2 bln for 1Q2019

For 1Q2019 PJSC Ukrnafta has paid UAH 1.99 bln in rent to the budgets of all levels, 13% up against the similar indicator of 1Q2018 (UAH 1.76 bln). The oblasts, raions and local communities’ budgets, according to the rent sharing mechanism, enshrined in law, received UAH 99.6 mln

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 March 2019

For 1Q2019

Sumy oblast

14.0

41.5

Ivano-Frankivsk oblast

7.3

21.7

Poltava oblast

5.6

17.5

Chernihiv oblast

3.3

9.8

Lviv oblast

2.6

7.5

Kharkiv oblast

0.5

1.3

Dnipropetrovsk oblast

0.09

0.3

Chernivtsi oblast

0.02

0.07

Total

33.4

99.6

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.