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PPC shares its experience of cooperation with communities

JV PPC talked about successful cooperation with communities

Poltava, February 13 – JV Poltava Petroleum Company joined the Week of Rent Decentralization held in the Poltava region, where the company presented its 25-year experience in cooperation with local communities. Within the framework of the sectoral forum “Social Partnership for Territory Development”, PPC`s legal adviser Liudmyla Khomich gave a speech about the company’s contribution to the development of local communities and voiced the prospects for such cooperation.

The first part of the presentation was devoted to rent. In 2018, PPC allocated 549 million UAH of tax payments to the national budget, of which more than 27 million UAH were rent payments to local budgets. Thus, the United Territorial Communities (UTC) and the village councils, where PPC operates, received more than 12 million UAH. While demonstrating the benefits of such allocations, Liudmyla Khomich presented a case of Nekhvoroshchanska UTC, on whose territory the company’s production facilities are concentrated. The rent from PPC makes 17% of the community budget – this presents additional opportunities for infrastructure development, implementation of social projects and programs. Rent payments are not the only source of additional local budgets` revenues. The employment of the local population means a possibility for local authorities to make a profit in the form of a tax on personal income. Thus, in 2018 PPC paid 23, 963 million UAH in the form of a tax on personal income to local budgets/

The company’s cooperation with local communities is not limited to taxes. “PPC strives to be a responsible citizen: to not only fulfill obligations to the investor, but also to contribute to the community development,” states PPC`s CEO, Viktor Gladun. “The principle is fundamental in the context of creating a transparent, competitive environment with clear rules of conduct.” Continuing the topic of social responsibility, Liudmyla Khomich spoke about the company’s voluntary participation in the development of settlements, financial support of educational institutions and participation in infrastructure projects.

A part of the speech was devoted to PPC`s environmental responsibility. The forum participants were introduced to the structure of the monitoring system of ground and surface water, soil and biodiversity in the company’s licensed areas. In addition, the PPC`s representative drew attention to the necessary components of the industry development: the stability of legislation, the disclosure of geological information, the transparent auctions for new license areas.

“With such an experience of effective partnership with the local communities, we look forward for at least 25 years of successful interaction in the future,” believes Liudmyla Khomich.

We would like to express gratitude to the organizers and participants of the event for the fruitful discussion of issues of cooperation between local communities and extracting companies. Stable dialogue is the key to effective interaction.