Energy Central Professional

 

MP Ustenko: Government should offer tax incentives for gas producing companies


Maryna Korotchenko  

 

    The Ukrainian government should establish a mechanism of tax incentives for the companies involved in natural gas exploration and production, which would not only promote the development of natural gas industry but also become one of steps towards Ukraine’s energy independence, Head of Subcommittee on Rent Payments, Environmental Tax and Taxation of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Servant of the People Member of Parliament Oleksii Ustenko has stated in a commentary to Ukrinform.

    “The government has already implemented a number of measures to ensure that Ukraine begins to provide itself with natural gas on its own, but this is still not enough. The following steps should be related to tax legislation. Natural gas production is a costly process and, thus, we should establish a mechanism of tax incentives for gas producing companies,” Ustenko told.

    In his words, today Ukraine has a high potential to increase natural gas production, and this opportunity should be used to gain energy independence.

    According to Ustenko, at the moment there is an active fight against ‘sleeping’ licenses, i.e. those which remain unused. Based on different estimates, they cover about one-third of the total number of licenses.

    In particular, Ukrainian President Volodymyr Zelensky signed a decree to bring the decision of the National Security and Defense Council of Ukraine, dated March 19, 2021, into force, according to which the subsurface management licenses and special permits provided to 19 companies had already been cancelled.

TOP


Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.