Smart Energy Group paid 10 million UAH of royalty to local budgets for the first quarter of 2019

Smart Energy Group paid 10 million UAH of royalty to local budgets for the first quarter of 2019
During the first three months Smart Energy Group of companies transferred 10 million UAH of royalty to local budgets of Poltava and Kharkiv regions.

In particular, the Representative Office of Regal Petroleum Corporation Limited paid over 1.5 million UAH in Poltava local budget. Additional 1.6 million UAH went to Lokhvitskyi and Chernukhinskyi district budgets. Village councils received 790 thous UAH.

Kharkiv district budget received 2.4 million UAH of royalty from Ukragazvydobutok and Prom-Energo Product. Also, 2.4 million UAH of royalty was transferred to district budgets. Budgets of local councils got 1.2 million UAH.

As a reminder, it has become possible due to decentralization of royalty according to the Law of Ukraine No 1793-VIII. Thus, from January 1st, 2018 state and private gas producing companies pay 95% royalty for production of hydrocarbons to the State budget and 5% to the local ones, of which 2% - regional, 2% - district and 1% - to the budget  of local administration depending on location (production) of natural resources. 

Reference

Smart Energy Group of companies is a part of Smart-Holding, in charge of implementing exploration projects, commercial development of the hydrocarbon deposits.

Oil & Gas business block of Smart Energy is represented by gas producing Ukrgazvydobutok (Kharkiv region) and Regal Petroleum, a listed British company having assets in Poltava and Kharkiv regions (Prom-Energo Product).

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