Country Report

Ukraine upstream fiscal summary

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13 April 2020

Ukraine upstream fiscal summary

Report summary

Ukraine’s concession regime forms the basis of our analysis. However, the government does offer Production Sharing Contracts (PSCs) to investors. A subsoil use tax (SUT) and corporate income tax form the main elements of the Ukraine concession system. The SUT behaves like a standard royalty and varies depending on hydrocarbon type, reservoir depth and shore status. We expect Ukraine to offer regular bid rounds alongside open-door policy for awarding new licences. The state does not have a mandatory equity participation in the concession regime.

Table of contents

  • Basis
    • Duration
    • Relinquishment
  • Government equity participation
    • Ring fencing
    • Bonuses, rentals and fees
    • Indirect taxes
    • Royalty
    • Liquids
    • Gas
    • Corporate income tax
    • Base
    • 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
  • Progressivity
  • Fiscal deterrence

Tables and charts

This report includes 23 images and tables including:

  • Timeline
  • Timeline detail
  • Split of the barrel - oil
  • Split of the barrel - gas
  • Share of profit - oil
  • Share of profit - gas
  • 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
  • Maximum government share – onshore, gas
  • Maximum government share – shelf/deepwater, gas
  • 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
  • Suboil use tax rates
  • Subsoil use tax
  • Assumed terms by location - oil and gas

What's included

This report contains:

  • Document

    Ukraine upstream fiscal summary

    PDF 1.10 MB