Ukrnafta paid UAH 3.6 bln of rent for 1H2018
Ukrnafta paid UAH 3.6 bln of rent for 1H2018

For June, 2018, PJSC Ukrnafta paid UAH 619,4 mln in rent to the state and local communities’ budgets of different levels. Thus, for 1H2018 the company paid UAH 3.6 bln of rent to the budgets of all levels. According to the rent sharing mechanism, enshrined in law, the oblasts, raions and local communities’ budgets received UAH 180,8 mln from this sum.

For June the biggest recipients of rent revenues are communities from Sumy oblast (UAH 13.3 mln), from Ivano-Frankivsk oblast (UAH 6.9 mln) and from Poltava oblast (UAH 4.4 mln).

5% of rent revenues to budgets of oblasts, raions and local communities, mln UAH

 

For June, 2018

For January-June, 2018

Sumy oblast

13.3

78.2

Ivano-Frankivsk oblast

6.9

39.9

Poltava oblast

4.4

27.4

Chernigiv oblast

3.1

17.8

Lviv oblast

2.6

14.2

Kharkiv oblast

0.5

2.7

Dnipropetrovsk oblast

0.07

0.5

Chernivetska oblast

0.03

0.1

Total

31.0

180.8

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.

According to the recent estimates, Ukrnafta will pay circa UAH 6.4 bln in rent in 2018, with about UAH 320 mln in rent revenues going to the oblasts, raions and local communities where the company operates.