Failure to Reduce Gas Royalty Rates in 2017 Impacts Competitiveness of Ukrainian Regime
04 Apr 2017
Ukraine cheered some operators with 2017 tax legislation reducing the standard royalty rates for oil production from 45% to 29%. However, draft proposals to reduce royalty rates on new gas wells to 12% were not included in the final legislation. With natural gas making up nearly 90% of Ukraine’s 2016 hydrocarbon production on a boe basis, a reduction in royalty rates on new gas production may be required in order to attract significant new investment to the country’s upstream gas sector.
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