Ukraine Gas Producers Reel From Tax Blow

摘要

Ukraine’s Parliament has approved temporary tax increases on hydrocarbons production in an effort to shore up a widening budget deficit due to the ongoing conflict. Small oil and gas producers slammed the decision as a step backward, with some going so far as to say they might reconsider their investments. Tax on oil production up to 5,000 meters deep will increase from 39% to 45% on output value, while those drilling deeper than 5,000 meters will see taxes jump from 18% to 21%. Natural gas producers, meanwhile, saw their tax rate double, with wells working up to a depth of 5,000 set to pay 55% compared to the current 28%, and those working at greater depths from 15% to 28%.