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JV PPC totaled UAH 108.2 million in rent to the state budget of Ukraine for the 1st quarter of 2021

May 12, Kyiv – JV Poltava Petroleum Company (hereinafter referred to as JV PPC) counted 108.2 million hryvnia in rent to the state budget of Ukraine for the 1st quarter of 2021.

In particular, local budgets of Poltava region received 5.41 million hryvnias, namely:

  • to the regional budget – UAH 2.16 million;
  • to the budgets of the OTG – 3.25 million hryvnia.

Rental funds are a significant income to local budgets of communities, because it makes it possible to develop and modernize infrastructure, implement important social and environmental projects.

JV PPC always pays taxes to the state budget of Ukraine in good faith and on time. Since April of this year, the correct calculation of the obligation for rent for the production of natural gas has been impossible due to the lack of a methodology approved by state bodies for converting the unit of measurement of natural gas from thousands of kilowatt-hours to thousands of cubic meters. The need to approve this methodology arose in connection with the entry into force from April 1, 2021 of the updated version of the Law of Ukraine “On the Customs Tariff of Ukraine” in terms of recognizing the unit of measurement of natural gas as a thousand kilowatt-hours (import parity from this date is determined for a thousand kilowatt-hours), while the base of taxation according to the Tax Code of Ukraine is the cost (import parity) of a thousand cubic meters of produced natural gas.

It is extremely important to prevent the formation of a critical situation in the oil and gas sector.

We hope that the issue will be resolved as soon as possible by the government and will be able to correctly calculate and pay rent for the use of mineral resources, to fill both the state and local budgets of Ukraine, ”commented Lyudmila Ilyinskaya, Chief Accountant of JV PPC.

JV PPC continues to support local hospitals in the fight against the COVID-19 pandemic and to implement important social projects for communities.