18.11.2010
Ukrainian Government Increases Royalty by 40%
Ukrainian Parliament increases oil and gas production taxes, stipulates the article 258/10 of a new Tax Code adopted by the Parliament on the 18 November. The Tax code is effective from January 1, 2011.
As before, extraction of hydrocarbons is subject to rent (royalty) tax and subsoil tax; both are based on the volume of hydrocarbons extracted.
Rent (Royalty):
The rent (royalty) is calculated for each kind of hydrocarbon produced. To calculate rent, the amount of gas, oil or condensate produced is multiplied by: (i) a base rent rate; and (ii) an adjusting factor (if applicable). The adjusting factor is not applicable for natural gas that is sold to Naftogaz of Ukraine for residential needs.The adjusting factors are published on a monthly basis on the website of the Ministry of Economy of Ukraine.
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Depth of extraction
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1 January 2007 to 31 December 2007(1)
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1 January 2008 to 3 June 2008(1)
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4 June 2008 to 31 December 2008(1)
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1 January 2009 to 29 April 2010(1)
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30 April 2010 to present(1) |
NEW RATES |
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Natural gas to be sold to Naftogaz of Ukraine for customers |
Up to 5,000 m
|
UAH 50 (USD 6.32) per Mcm
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UAH 50 (USD 6.32) per Mcm
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UAH 50 (USD 6.32) per Mcm
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UAH 50 (USD 6.32) per Mcm
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UAH 50 (USD 6.32) per Mcm |
UAH 70 (USD 8.85) per Mcm |
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More than 5,000 m
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UAH 40 (USD 5.06) per Mcm |
UAH 40 (USD 5.06) per Mcm
|
UAH 40 (USD 5.06) per Mcm
|
UAH 40 (USD 5.06) per Mcm
|
UAH 40 (USD 5.06) per Mcm |
UAH 56 (USD 7.07) per Mcm |
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Natural gas to be sold to industrial customers |
Up to 5,000 m
|
UAH 50 (USD 6.32) per Mcm
|
UAH 200 (USD 25.28) per Mcm
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UAH 200 (USD 25.28) per Mcm
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UAH 200 (USD 25.28) per Mcm
|
UAH 200 (USD 25.28) per Mcm
|
UAH 280 (USD 35.40) per Mcm |
|
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More than 5,000 m
|
UAH 40 (USD 5.06) per Mcm
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UAH 100 (USD 12.64) per Mcm
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UAH 100 (USD 12.64) per Mcm
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UAH 100 (USD 12.64) per Mcm
|
UAH 100 (USD 12.64) per Mcm
|
UAH 140
(USD 17.70) |
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Condensate and oil |
Up to 5,000 m
|
UAH 1,090 (USD 137.80) per ton |
UAH 1,090 (USD 137.80) per ton
|
UAH 1,529.9 (USD 193.41) per ton
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UAH 1,529.9 (USD 193.41) per ton
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(USD 193.41)
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UAH 2,141.86
(USD 270.77) |
|
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More than 5,000 m
|
(USD 51.07) per ton
|
(USD 51.07) per ton
|
(USD 71.57) per ton
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(USD 71.57) per ton
|
(USD 71.57) per ton
|
UAH 792,54 |
(1) Hryvnias have been translated into U.S. dollars at the rate of USD 1.00 = UAH 7.91 (the exchange rate as of 30 June 2010).
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| Rates | USD | EUR | UAH |
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| 1 EUR = | |||
| 1 UAH = |
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| Kiev | |
| London | |
| New York |