Local communities received 500 million UAH from oil and gas companies

The program of transferring a part of rental payments to local budgets is already in its second year. Oil and gas companies paid to local budgets 540.3 million UAH of rent for the first quarter of 2019.

According to the new legislation, 5% of rent payments of Ukrainian oil and gas companies must be directed to local budgets, and the other 95% goes to the general fund of the state budget.

Natural gas production brought 433.488 million UAH, oil production –71.621 million UAH, gas condensate production –35.252 million UAH.

According to the law, 2% is directed to regional budgets, 2% to district and 1% to local governments at the location of production of the corresponding natural resources. The exceptions are the budgets of cities of republican and regional significance and the budgets of the united territorial communities, which receive 3% each.

In January-March 2019, the general and local budgets received almost 11 billion UAH.

Source: ua-energy

Tags: gas, Naftogaz, contracts, oil, hydrocarbon production, legislation

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