Largest oil&gas producers pay UAH 60 bln. of taxes in 2016

March 1, 2017

As reported in the survey* done by NefteRynok. Five private oil & gas companies paid more than UAH 10 billion of taxes in 2016.

Largest companies reported that tax revenues of two private oil & gas companies alone, Burisma Group and Neftegazdobycha, would be enough to support the entire region of Kiev. According to the Kyiv Regional Council, the 2017 budget of Kyiv region amounts to UAH 7.66 billion.

Top-5 private oil & gas producers based on amount of taxes paid to the State budget of in 2016, UAH bln.

In 2016, private oil & gas companies produced 4.1 bcm (production volumes increased by 220 bcm or 7%): in the first half year production growth rate reached 14%, when in the second half it started to drop. The companies reported that the decline in tax revenues was associated with blocking companies’ activities by inspection services and law enforcement agencies. Thanks to a boost in gas production, the negative trend was stopped.

Today at the Ukrainian Energy Forum 2017, Director for International Cooperation and Strategic Development of Burisma Group Vadym Pozharskyi noted that this year Burisma Group companies are going to pay over UAH 2 bln. of taxes to the state budget of Ukraine. At the same time, the Group already paid over UAH 6 bln. of taxes in 2015-2016.

* survey was done based on data provided by companies producing 95.43% of total natural gas volumes and 97.85% of oil and gas condensate.