On January 1, 2018, the Law of Ukraine On Amendments to the Budget Code of Ukraine on Remittance of Royalty Payments for the Subsoil Use to Produce Oil, Natural Gas and Gas Condensate came into effect. As per the law, 95% of royalty tax goes to the State Budget of Ukraine and 5% – to local budgets of various levels.

 Thanks to the above mentioned changes in the legislation, the budgets of all levels in Poltava region have already received UAH 15.8 mln from GEO ALLIANCE Group for 6 months, which includes UAH 6.3 mln paid to the regional budget, UAH 6.2 mln transferred to Lokhvytsia district where the Group’s main production is concentrated and payments of UAH 1.5 mln each to the budgets of Yakhnyky and Zhabky village councils in Lokhvytsia district.

The community development formula works! The richer subsoil is and the higher hydrocarbon production is, the greater benefits regions of production receive.