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The communities and budgets of Sumy, Ivano-Frankivsk, and Poltava regions were the major recipients of the funds.
Ukraine's largest oil producer, Ukrnafta, in December 2019 paid UAH 506.7 million (US$20.8 million) in royalties for oil and gas production to budgets of all levels, of which UAH 25.3 million (about US$1 million) was channeled into to local budgets.
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"In December 2019, PJSC Ukrnafta paid UAH 506.7 million in royalties to the state and local budgets of all levels. According to the mechanism for the distribution of royalties for oil and gas production, enshrined in law, local budgets received UAH 25.3 million," the company's press service said on January 24.
The major recipients of said payments were the budgets of Sumy region (UAH 10.6 million/US$435,676), Ivano-Frankivsk region (UAH 6.04 million/ US$248,253) and Poltava region (UAH 3.6 million/US$147,965).
The amount of royalties paid to the local budgets depends on the volume of hydrocarbons production in the region. The communities usually use the funds for local infrastructure and social projects.
Ukrnafta in 2019 paid UAH 12.47 billion (US$512.5 million) in taxes to the budgets of all levels. The paid taxes include over UAH 60 million (US$2.5 million) in overdue tax debt the company paid off over the period under review, the report said. The company is among the 10 biggest taxpayers, according to the State Fiscal Service of Ukraine.
As UNIAN reported earlier, in 2018, Ukrnafta paid UAH 7.8 billion (US$320.6 million) in royalties for oil and gas production to budgets of all levels, which was 36.7% up from the figure reported in 2017. At the same time, UAH 389.3 million (US$16 million) was allocated to local budgets.
UNIAN memo. Ukrnafta is the largest state-owned oil and gas company in Ukraine. It accounts for about 68% of oil and condensate production, and 11% of gas extraction in the country. Ukrnafta is one of the key players in the retail market for petroleum products in Ukraine: the company owns more than 560 fuel filling stations throughout the country.
Ukrnafta's shares are listed on the Ukrainian Exchange (UX) and the PFTS Stock Exchange (Kyiv). Depositary receipts for company's shares are traded on the Frankfurt Stock Exchange.