Ukrnafta paid near UAH 850 million in taxes for August
Ukrnafta paid near UAH 850 million in taxes for August

For August 2020, PJSC Ukrnafta paid to the budgets of all levels in taxes in the amount of UAH 848 mln. This amount included the rent for subsoil use, VAT, profit tax, excise duty and other taxes. The amount of taxes paid for 8 months of 2020 reached 8.63 billion UAH.

Ukrnafta paid UAH 396 mln in rent to the state and local budgets of all levels for August 2020. According to the rent sharing mechanism, established by law, the oblasts, raions and local communities’ budgets received UAH 19.82 mln. The biggest recipients of rent revenues from Ukrnafta were the budgets of Sumy (UAH 8.77 million), Ivano-Frankivsk (UAH 4.40 million) and Poltava (UAH 2.51 million) regions. The amount of rent paid to the local budgets depends on the volume of hydrocarbons production in the region and the price of hydrocarbons. 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


InAugust 2020

Sumy oblast


Ivano-Frankivsk oblast


Poltava oblast


Chernihiv oblast


Lviv oblast


Kharkiv oblast


Dnipropetrovsk oblast


Chernivtsi oblast




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.