UAH 1.42 bln of Royalties: DTEK Oil&Gas Contribution to the State Budget in 2019

In particular, the company paid the following sums to the regional, district, village, and territorial community budgets:

UAH 28.4 million — to the budget of Poltava Region

UAH 6.59 million — to the budget of Machukhy united territorial community

UAH 4.59 million — to the budget of Savyntsi village council

UAH 7.42 million — to the budget of Kovalivka village council

UAH 9.18 million — to the Myrhorod District budget

UAH 14.85 million — to the Shyshaky District budget

The local communities used these funds to develop local social infrastructure, health care and energy efficiency projects, such as repair and equipment of day care centres and schools, renovation of cultural centres, and repair of road surface.

To recap, starting from 01 January 2018, oil and gas extracting companies pay 5% royalties to local budgets under Law of Ukraine No. 1793-VII ‘On amendments to the Budget Code of Ukraine concerning the payment of royalties for the use of subsurface resources to extract oil, natural gas, and gas condensate’. In two years, DTEK Oil&Gas paid UAH 169 mln of royalties to local budgets.