For January-June of 2018 PJSC Ukrnafta paid UAH 7.4 bln of taxes, including UAH 690 mln of the overdue tax debt. The company continues to repay the outstanding tax debt on a regular basis along with all current taxes. Ukrnafta’s conservative plan envisages repayment of UAH 1.2 bln in 2018. As of June 30, the outstanding tax debt made up UAH 11.05 bln.
Meanwhile, the risks to repayment of the overdue tax debt remain the same. These are the attempts by the regulator to block its production licenses as well as the instability of the state-run oil auctions where the company is required to sell its oil and condensate and the starting prices are set based on the formula approved by the government. Ukrnafta’s proposals to reform the state oil auction have not been implemented in full and the competition at the auctions remains restricted. In particular, in H1, 2018, only six out of 12 state-run oil auctions the company submitted applications for were recognized as valid.
Note to editor
Ukrnafta recorded UAH 11.05 bln of outstanding tax debt as of the end of H1, 2018. This includes the debt owed by the company and its structural units. Ukrnafta’s approach to recording and reporting tax debt is consistent with the Ukrainian law and is supported by the independent external auditor. The bulk of the debt accumulated in 2014-2015 before the management change.