Country Report

Ukraine upstream fiscal summary

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28 June 2018

Ukraine upstream fiscal summary

Report summary

Virtually all upstream projects in Ukraine operate under the concession regime. Production Sharing Contracts (PSCs) were introduced to attract foreign investment primarily in offshore licences. Only a couple of PSCs still exist and none of them contains any producing fields. In 2013, a subsoil use tax replaced royalty. Its current rates range between 14% and 29% for liquids and between 6% and 12% for gas. Corporate income tax has been unchanged at 18% since 2014. Currently, Ukraine pursues an open door policy for licence awards but the government is considering regular licensing rounds.

Table of contents

  • Executive summary
    • Basis
    • Licence terms
    • Government equity participation
    • Fiscal terms
      • Ring fencing
      • Bonuses, rentals and fees
      • Indirect taxes
      • Royalty
      • Corporate income tax
        • Exploration costs
        • Depreciation
        • Losses
      • Fiscal treatment of decommissioning
      • Product pricing
      • Summary of modelled terms
    • Recent history of fiscal changes
    • Stability provisions
    • Split of the barrel and share of profit
    • Effective royalty rate and maximum government share
      • Maximum government share – onshore, gas
      • Maximum government share – shelf/deepwater, gas
    • Progressivity
    • Fiscal deterrence

Tables and charts

This report includes 25 images and tables including:

  • Revenue flowchart: Ukraine Concession
  • Timeline
  • Timeline detail
  • Split of the barrel - oil
  • Economic analysis: Image 2
  • Economic analysis: Image 3
  • Economic analysis: Image 4
  • Effective royalty rate - onshore, oil
  • Effective royalty rate - shelf/deepwater, oil
  • Effective royalty rate - onshore, gas
  • Effective royalty rate - shelf/deepwater, gas
  • Maximum government share – onshore, oil
  • Maximum government share – shelf/deepwater, oil
  • State share versus pre-share IRR - oil
  • State share versus pre-share IRR - gas
  • Investor IRR versus pre-share IRR - oil
  • Investor IRR versus pre-share IRR - gas
  • Bonuses, rentals and fees
  • Indirect taxes
  • Subsoil use tax
  • Subsoil use tax
  • Assumed terms by location - oil
  • Assumed terms by location - gas
  • Economic analysis: Table 7
  • Economic analysis: Table 8

What's included

This report contains:

  • Document

    Ukraine upstream fiscal summary

    PDF 286.84 KB

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