Ukrnafta has fully repaid its tax debt to the state
Ukrnafta has fully repaid its tax debt to the state

Ukrnafta PJSC reports full repayment of the "historical" tax debt. The company has transferred UAH 28.9 billion to the special fund of the state budget. This amount includes debt on VAT, profit tax and rent payment, accrued fines and penalties for late payment of monetary liabilities.

The repayment of the tax debt took place within the framework of implementing the agreements between Ukrnafta and Naftogaz of Ukraine on the purchase and sale of natural gas. Under this agreement, Naftogaz paid Ukrnafta UAH 15.1 billion for UAH 2.061 billion cubic meters of natural gas produced in 2006.

In addition, Ukrnafta received an advance payment of UAH 23.5 billion for the supply of natural gas of future production. The company expects to supply gas under the prepayment over the next few years. In its turn, PJSC "Ukrnafta" returned to NJSC "Naftogaz of Ukraine" UAH 2.5 billion loan, which the company received earlier this year for payment of VAT liabilities, which arose in the process of natural gas sales.

PJSC "Ukrnafta" also paid UAH 3.9 billion of current liabilities for VAT and UAH 3.3 billion of advance payments of income tax to the special fund of the state budget as a result of implementation of agreements on gas sales. Implementation of the gas agreements between the companies became possible after the adoption by the Verkhovna Rada of Ukraine laws 1005-IX and 1006-IX and the resolution of the Cabinet of Ministers of Ukraine No. 1195.

"Settlement of the tax debt issue came as a result of coordinated actions of the Supervisory Board and the Management Board of Ukrnafta, active work of the Naftogaz team and support of the Government and people's deputies. Ukrnafta intends to focus on strategic tasks and the formation of conditions that will ensure a sustainable increase in oil and gas production in the interests of Ukraine's energy security," said Oleg Gez, Chairman of the Board of PJSC "Ukrnafta".

The repayment of the tax debt will have a positive impact on Ukrnafta's business operations and financial position. At the same time PJSC "Ukrnafta" notes that a similar decision could have been implemented back in 2016, when the company proposed to the State Tax Service to repay the tax debt at the expense of 2.061 billion m3 of natural gas, owned by Ukrnafta and the ownership of which was confirmed by the decision of the High Economic Court of Ukraine in 2014. The refusal of the Large Taxpayers Office of the State Tax Service to accept this volume of gas as a tax pledge led to a rapid increase in the amount of Ukrnafta's tax debt precisely because of the accrual of fines and penalties over the next 4 years.

At the same time, the company positively evaluates the fact of receiving payment for part of the natural gas of its own production, which Ukrnafta has been trying to receive since 2006, as well as the implementation of the decision of the High Economic Court of Ukraine. 

 

Note to editors:

PJSC Ukrnafta's tax arrears were formed during 2014-2015 after a sharp increase in the rent for oil production.