February 2, 2021, Kiev – JV Poltava Petroleum Company (hereinafter – JV PPC) counted UAH 325.3 million in rent in 2020, of which UAH 16.2 million were rent payments to local budgets of Poltava region, in particular:
• To local communities and village councils – UAH 8.8 million;
• To district budgets – UAH 6.5 million;
• To regional budget of the Poltava region – 883 thousand hryvnia.
Rent is a special type of tax for the use of subsoil, paid by oil and gas companies, 5% of which is sent to local budgets in the territory of which mining activities are carried out.
Lower demand and falling prices for hydrocarbons led to a reduction in the Company’s drilling program, which led to a decrease in production, and, accordingly, a decrease in rental income. So, in 2019 JV PPC counted 564.9 million hryvnia in rent, which is almost twice more than in 2020.
“The oil and gas industry is one of the largest budget-forming sectors of the Ukrainian economy. The rent that companies pay from mining is a significant contribution to the central budget and local connected communities. In difficult times for the country and industry, our company continues to fill both the state and local budgets of the Poltava region. In addition, during the year we provided charitable assistance to hospitals in the fight against the pandemic, ”says Victor Gladun, CEO of JKX Oil and Gas and JV PPC.
JV PPC in 2020 provided charitable assistance to fight COVID-19. For anti-epidemic and diagnostic measures for the communities of the Poltava region, the company allocated assistance in the amount of more than 800 thousand hryvnias, including for the Novosanzharskaya and Mashevskaya central regional hospitals, the primary health care center of the Novosanzharsky district and the Poltava regional clinical infectious diseases hospital. In general, to combat COVID-19 in 2020, the Company provided assistance in the amount of 4.7 million hryvnias, which were received, among other things, by medical institutions in Kiev, Kharkov and Poltava regions.
JV Poltava Petroleum Company is a Ukrainian-British joint venture established in 1994 and is a subsidiary of JKX Oil & Gas plc. JV PPC is one of the leaders among the non-state oil and gas companies in Ukraine. The company’s field of activity is the search, exploration, production and treatment of gas and oil. Poltava Petroleum Company uses the most modern technologies and methods to achieve energy independence for Ukraine.
The parent company, JKX Oil & Gas plc, is a publicly traded company listed on the London Stock Exchange since 1995 and is governed by a Board of Directors. The CEO of JV PPC and JKX Oil & Gas plc is Viktor Gladun, who has been heading the company since 2016.