Ukrnafta rent payments grew by 37% in 2018

“In 2018, Ukrnafta paid about UAH 7.8 billion in rent payments to the budgets of all levels, which is 36.7% higher compared with 2017. Thus, the company has entered the list of five largest tax payers in Ukraine,” reads the report.

In particular, UAH 389.3 million was transferred to local budgets in line with the mechanism for distributing rent for oil, gas and condensate production, stipulated in the legislation in 2018.

In December 2018, Ukrnafta paid UAH 623.6 million in rent payments for the subsoil use to the budgets of all levels, of which UAH 31.2 million was transferred to local budgets.

It is noted that the largest revenues from the rent were transferred to the communities of Sumy region (UAH 165.0 million), Ivano-Frankivsk region (UAH 87.4 million) and Poltava region (UAH 62.5 million).

The amount of rent payments transferred to local budgets depends on the volume of hydrocarbons production in a relevant region. According to the data provided by territorial communities that receive rent payments from Ukrnafta, funds are mostly spent on local social and infrastructure projects.

As Ukrinform reported, last year Ukrnafta for the first time in 12 years increased the annual growth of oil and condensate production by 5%.

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