Page 65 - UKRRptJan21

9.2 ​Major corporate news 9.2.1​ Oil & gas corporate news
Naftogaz​ Group paid UAH94.8bn to the state and local budgets in January-November 2020, including UAH39.6bn of remaining dividends for 2019. Revenues from Naftogaz Group exceeded 10% of total state budget revenues in January-November 2020. Naftogaz Group remains Ukraine’s biggest taxpayer. In 2019, Naftogaz Group’s tax and dividend payments to budgets of all levels totalled nearly UAH121.4bn.
Debt settlements between the Ukrainian government, Naftogaz and Ukrnafta have been completed: the state received an additional UAH10.3bn.
Ukraine's Ministry of Energy has paid Naftogaz compensation for supplying imported gas during 2015-2019 within the framework of Public Service Obligation (PSO) conditions. During the relevant period, Naftogaz sold gas at regulated prices below market for the needs of the population, religious and state-subsidized organizations. The compensation that Naftogaz received amounts to UAH32.2bn.
On November 17, the Ukrainian parliament approved amendments to the State Budget 2020 that made the payment of compensation possible.
These amendments, together with the relevant decisions of the Cabinet of Ministers, provided for the payment of current and outstanding taxes: Naftogaz has recognized the compensation as income and paid UAH6.4bn of corporate income tax.
The group also paid Ukrnafta for gas extracted in 2006, including an outstanding amount of UAH12.6bn as part of the settlement according to legislation (bills 1005-ІХ and 1006-ІХ), and made an advance payment of UAH23.5bn for gas that will be supplied over the next several years. The actual delivery of gas will result in taxable income for Ukrnafta during the coming period.
Ukrnafta has paid several taxes to the state budget: UAH3.3bn in corporate income tax, UAH3.9bn in VAT on the advance payment of future gas deliveries, and UAH28.9bn for overdue tax liabilities including fines and penalties.
This means that an additional UAH10.3bn was paid to the state budget.
"I am pleased to announce that we have found a resolution for receiving compensation for imported gas deliveries under the PSO in 2015 to 2019, and payment of current and outstanding tax debts. We have added more than UAH10bn to the state budget. It is an excellent example of how effective and coordinated efforts between the government, Naftogaz, and the management of Ukrnafta can work in the interests of the state.” said Peter Van Driel, CFO of the Naftogaz Group, commenting on the successful completion of the operation.
65​ UKRAINE Country Report​ January 2021 ​ ​www.intellinews.com