PJSC Ukrnafta : Ukrnafta paid over UAH 8.6 billion in taxes

Ukrnafta paid over UAH 8.6 billion in taxes

PJSC Ukrnafta paid UAH 8.64 bln in taxes to budgets of all levels during January-August 2021. This amount included the rent for subsoil use, VAT, excise duty and other taxes.

The state and local budgets of various levels received UAH 5.1 bln of royalties for the use of subsurface resources. According to the rent sharing mechanism, established by law, the oblasts, raions and local communities' budgets will receive UAH 253.7 mln. The largest revenues from Ukrnafta's rent will go to the budgets of Sumy, Ivano-Frankivsk and Poltava regions. The amount of rent paid to the local budgets depends on the volume of hydrocarbons production in the region and the price of hydrocarbons. The communities usually fund local infrastructure and social projects with rent revenues.

Ukrnafta is responsible for fulfilling its obligations and pays its taxes on time, as required by law. As of August 31, the company had no debt to the state budget. According to DFS and Rating magazine, Ukrnafta became the biggest taxpayer in 2020, paying a record UAH 47.5 bln to the budget, 253% more than in 2019.

Rent revenues to budgets of oblasts, raions and local communities, mln UAH

	8 months 2021
Sumy oblast	104.4
Ivano-Frankivsk oblast	59.3
Poltava oblast	41.2
Chernihiv oblast	22.7
Lviv oblast	21.3
Kharkiv oblast	3.9
Dnipropetrovsk oblast	0.7
Chernivtsi oblast	0.2
Total	253.7

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.