Ukrnafta offers to tax authority solution to overdue taxes
Ukrnafta offers to tax authority solution to overdue taxes

In light of the actions by the State Fiscal Service of Ukraine to seize funds from the bank accounts of PJSC Ukrnafta the company has issued the following statement.

Ukrnafta believes that the solution to the problem of overdue taxes owed by the company lies in the implementation of the decisions of the commercial and administrative courts, including the most recent ruling by the Higher Administrative Court of Ukraine of 30 January 2017 obligating the tax authorities to accept from Ukrnafta 2.1 bln m3 of natural gas as the tax lien.

The court has dismissed as groundless the claims by the SFS that such volume of gas is not available. The SFS has failed to explain its refusal to accept and sell the liquid assets whose value is comparable to the amount of the tax debt of the company. Moreover, while failing to comply with the court decision the SFS continues to charge fines and penalties on Ukrnafta’s tax debt, an ill-founded practice, which artificially inflates the company’s debt.

Without the implementation of the court decisions, the seizure of money by the SFS may have significant adverse impact on the Ukrnafta’s operations, leading to suspension of operations, delays in payment of salaries and taxes. Such actions may also threaten the essential investments by the company to maintain basic production, ensure safety and asset integrity. The investment activity is critical for Ukrnafta to stabilize production of hydrocarbons and safeguard future tax revenues.

Ukrnafta remains open to constructive discussion with the State Fiscal Service of Ukraine to resolve the issue of overdue taxes and implement the decisions by the commercial and administrative courts.

For more information please contact press office: +38 044 239 14 93