Over the last 5 months the Companies of Smart Energy Group have transferred 12.4 mln of royalty to local budgets


Over the last 5 months of this year local budgets of Poltava and Kharkiv regions received 5.1 mln UAH and 7.3 mln UAH accordingly. This amount was allocated by the Companies of Smart Energy Group as part of royalty decentralization.

In particular, regional budget of Poltava region where the Representative Office of Regal Petroleum Corporation Limited operates received 2 mln UAH. Also, another 2 mln UAH went to Lokhvitsa district budget and Chornukhy district budget. Village Council budgets received 1 mln UAH.

Ukrgazvydobutok and Prom-Energo Product companies that operate in Kharkiv region paid almost 3 mln UAH each to the regional and district budgets. Another 1.5 mln UAH went to Village Council budgets and Merefyansk City Council.

“As of today local village communities of “gas producing” area got 12.4 mln UAH from Smart Energy Group only. We are talking about significant amount of money that has already went to the local budgets. We hope this year communities will be able to use funds effectively and implement relevant and socially vital projects, such as, for instance, renovations of roads, schools, hospitals and also cover other public needs”, - noted Yevhen Palyenka , Deputy Director for Economy and Finances of Smart Energy Group.

As a reminder, such transfers became possible once royalty got centralized under the Law of Ukraine No.1793-VIII (formerly known as proposed law No.3038, which was strongly supported by oil and gas producing companies). Thus, starting from January 1st, 2018 state and private companies pay 95% of royalty for hydrocarbons production to the state budget, and 5% to the local ones, of which 2% goes to the district budgets and 1% goes to the budgets of local governments depending on location (area of production) of natural resources.