Ukrnafta pays over UAH 500 billion in rent payments
Ukrnafta pays over UAH 500 billion in rent payments

For December 2019, PJSC Ukrnafta paid UAH 506.7 mln in rent to the state and local budgets of all levels. According to the rent sharing mechanism, enshrined in law, the oblasts, raions and local communities’ budgets received UAH 25.3 mln. 

The biggest recipients of rent revenues from Ukrnafta were the budgets of Sumy (10.6 million), Ivano-Frankivsk (UAH 6.04 million) and Poltava (UAH 3.6 million) regions. The amount of rent to the local budgets depends on the volume of hydrocarbons production in the region. The communities usually fund local infrastructure and social projects with rent revenues. 

Oleg Gez, Acting Chairman of the Board of Ukrnafta, said: "Our company has fully met its current rent payment obligations despite persistent problems with the sale of our oil and outstanding tax debt. It was not easy, because rent payment obligations are accrued at the moment of production, regardless of whether we were able to sell this oil or not. However, Ukrnafta is a responsible company and we realize that these funds are important for the communities in which we operate. The mechanism of redistribution of rent payments has significantly increased the capacity of local communities. During 2019 local budgets received over UAH 350 million from the rent payments of Ukrnafta - this allowed them to finance the development of local infrastructure and other socially important projects". 

Over twelve months of 2019, PJSC Ukrnafta paid UAH 12.47 bln in taxes to the budgets of all levels. The paid taxes include over UAH 60 mln of the overdue tax debt the company returned in the reported period. According to the State Fiscal Service of Ukraine, Ukrnafta is among the top 10 taxpayers.

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

 

For December 2019

Sumy oblast

10.6

Ivano-Frankivsk oblast

6.04

Poltava oblast

3.6

Chernihiv oblast

2.4

Lviv oblast

2.2

Kharkiv oblast

0.4

Dnipropetrovsk oblast

0.07

Chernivtsi oblast

0.02

Total

25.3