The President signed the law on enrollment of the rent for the use of subsoil for the extraction of oil and gas in local budgets

The President of Ukraine Petro Poroshenko signed the law №1793-VIII «On amendments to the Budget code of Ukraine on transfer of rental fee for use of subsoil for the extraction of oil, natural gas and gas condensate», adopted by the Verkhovna Rada on 20 December 2016.

As reported on the official website of the Ukrainian President, the law enters into force on 1 January 2018.

«Distribution of funds from rental payments for use of mineral resources… will promote local interest in the development of the gas industry in the area where they live, as well as the equitable distribution of funds between budgets of different levels», — stated in the message.

As reported, the law No. 3038 of the direction 2018 5% of the rent from oil, gas and condensate to the local budgets 20 Dec supported by 259 people’s deputies of the Parliament.

The law assumes 2% rent direct to the regional budgets, and 2% in local and 1% to the budgets of local self-government at the location (production) related natural resources. The exceptions are the budgets of cities of Republican and regional significance and the budgets of the United territorial communities, which will receive 3%. 95% of rents will flow into the General Fund of the state budget.

In the case of subsoil use within the continental shelf and/or exclusive (marine) economic zone, in the General Fund budget will be credited 100% of the rent.

During the discussion the deputies decided to run this rate in 2018, not 2017, so as not to unbalance the budget in 2017, the loss of which could reach 2.4 billion UAH.

Recall now that the rental fee for use of mineral resources the extraction of natural gas from deposits at the depth of 5 km is 29%, from deposits deeper than 5 km – 14%.




The President signed the law on enrollment of the rent for the use of subsoil for the extraction of oil and gas in local budgets 07.02.2017

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