President of Ukraine Petro Poroshenko signed Law of Ukraine No. 1793-VIII “On amendments to the Budget code of Ukraine regarding the enrollment of rental fee for use of subsoil for the production of oil, natural gas and gas condensate”. About it the press service of the head of state.
The law was adopted by the Verkhovna Rada of Ukraine on 20 December 2016.
“The law is aimed at the development of administrative-territorial units on whose territory is the extraction of hydrocarbons, and establishment of productive cooperation between the enterprises of oil and gas complex and bodies of state Executive power and local self-government”, – noted in press service.
The law establishes the distribution of funds from the rent for the use of subsoil for the extraction of oil, gas and gas condensate.
It is expected that the law will stimulate 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, communities, villages, towns and cities where it operates oil & gas industry.
According to the amendments to the Budget code of Ukraine, revenues of the General Fund of the State budget of Ukraine shall be credited 95% of the rental fee for use of subsoil for the extraction of oil, natural gas and gas condensate.
In addition, 2% of rent for the use of subsoil for the extraction of oil, natural gas and gas condensate will be credited to the district budgets at the location (place of production) related natural resources.
The law stipulates that 3% of rental fee for use of subsoil for the extraction of oil, natural gas and gas condensate credited to budgets of cities of Republican of the Autonomous Republic of Crimea and oblast significance, and budgets of territorial communities United by location (place of production) related natural resources.
So, 2% rent for use of subsoil for the extraction of oil, natural gas and gas condensate shall be credited to the budget of the Autonomous Republic of Crimea, regional budgets at the location (place of production) related natural resources.
The law also stipulates that 1% of the 3% of rental fee for use of subsoil for the production of oil, natural gas and gas condensate shall be credited to the budgets of local self-government at the location (place of production) related natural resources.
The law shall enter into force on 1 January 2018.
