According to the financial statements for Q1 2018, JV Poltava Petroleum Company (PPC) transferred UAH 5.89 million in royalty payments to the local budgets of the Poltava region. In January, UAH 2.16 million was transferred, in February – 1.86 million, in March – 1.86 million. Totally PPC transferred UAH 117.8 million to the state budget for the Q1 2018.
The payments have been made since January 1, 2018 per Law of Ukraine 1793-VIII, according to which 5% of the total royalty payments for subsoil use are transferred to local and regional budgets. The purpose this new mechanism is to stimulate development of local communities where gas producing companies operate. The funds are expected to be used, among other projects, for development of infrastructure and energy efficiency of these regions.
Deductions from royalty payments by PPC are being transferred to the budgets of the Nekhvoroschanska and Drabinivska united territorial communities, as well as the Basilivschinske village council, located in the Novosanzharskyi and Mashivskyi districts of Poltava region.
In addition, PCC continues implementation of its own regional support program, which received over $150,000 in 2017. In particular, the company provides irrevocable financial assistance to educational institutions in the Novosanzharskyi and Mashivskyi districts, finances repairs of regional and local roads as well as construction and repair of water supply mains. The company also organizes charitable cultural events for local residents.