For 2018 PJSC Ukrnafta paid nearly UAH 7.8 bln in rent to the budgets of all levels, 36.7% up against 2017. Thus, the company is one of five biggest tax payers in Ukraine. The oblasts, raions and local communities’ budgets received UAH 389.3 mln from this sum, according to the rent sharing mechanism, enshrined in law and valid from 2018.

For the last month of 2018, the company paid UAH 623.6 mln in rent to the state and local communities’ budgets of different levels, including UAH 31.2 mln to the local budgets.

For last year the biggest recipients of rent revenues were the communities from Sumy (UAH 165.0 mln), Ivano-Frankivsk (UAH 87.4 mln) and Poltava (UAH 62.5 mln) oblasts. The amount of rent, received by this or that region, depends on the volume of hydrocarbons production there. According to the communities that receive rent payments from Ukrnafta, the major of it is used for funding local social and infrastructure projects.

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

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.

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