Ukrnafta nearly doubled the amount of taxes paid to the government in January-May 2017. During this period, the company paid UAH 4.7 bln in taxes, up from UAH 2.4 bln paid during the same period in 2016.

Mark Rollins, Chairman of the Board of Ukrnafta:

«The benefits of a working Ukrnafta should be evident to all – the company produces 70% of Ukraine’s oil, pays taxes, undergoes modernization and increases salaries. Financial rehabilitation will not only allow us to pay off the legacy tax debt, but will also give the opportunity to ramp up investments. The company cannot remain in a limbo for the second year when our proposals are neither accepted, nor rejected».

At the press conference, Mark Rollins emphasized that Ukrnafta needs urgent financial rehabilitation. The company submitted the relevant proposal to the State Fiscal Service in May. Ukrnafta proposes to pay off the tax debt within 3 years with the cash flow generated solely from operational activities. The company will continue to pay current taxes and will be able to increase investments and maintain stable operations. Ukrnafta also expects to be able to maintain production at all licenses.

The Chairman of the Board noted that as long as there is no decision about the mechanism for repayment of the tax debt, the company is limited to the critical investments to maintain basic production systems, safety and asset integrity. Within the first 4 months of this year, Ukrnafta invested about UAH 200 mln vs UAH 500 mln envisaged by the business plan. In March 2017, the SFS seized over UAH 170 mln from Ukrnafta’s bank accounts, and later attempted to block all expenditure transactions on the company’s bank accounts through a court order.

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