On Feb. 7 President of Ukraine Petro Poroshenko signed the law “On amendments to the Budget code of Ukraine on transfer of rental fee for use of subsoil for the extraction of oil, natural gas and gas condensate”. Adopted amendments should promote cooperation between oil and gas companies and local authorities. In general, the law provides development of those settlements and territories, related to the extraction spots of the natural resources mentioned above. The law enters into force from Jan. 1, 2018.
According to the law 95% of the rent fee for use of subsoil for the extraction of oil, gas and gas condensate will be transferred to the State budget. 2% will flow to the local budgets of the districts related to the extraction spots.
The law provides that 3% of the rent will be directed to the budgets of the cities of regional significance, in the case of the Autonomous Republic of Crimea – of republic significance. This list includes amalgamated local communities.
Also, 2% of the rent will flow to the budget of the Autonomous Republic of Crimea and regional budgets. 1% of the rent is envisaged for the local government.
These changes will ensure efficient distribution of funds among the budgets of different levels.
It should be recalled, that the corresponding law was adopted by the Parliament on Dec. 20, 2016.
Source: Official website President of Ukraine