Weekly news digest July 21-27, 2014


The last week government restored attack of oil and gas industry. Right after the Draft Law on special period in fuel and energy sector which did not go any further than first reading the government decided to review the taxes for upstream: by Draft Law 4309а. T he c hanges to Tax Code were drafted by the Ministry of Finance, this way they are trying to increase the taxes that way much that producing oil and gas will be not economical and the companies would have to stop operations. There is a tale going about sharp increase of taxes for upstream companies is the answer of government on Ukrnafta refusing to pay dividends in amount of 1.3 billion UAH in 2013. By raising tax the government could easily compensate this
amount for budget purposes. However, all upstream companies apart from Ukrnafta would suffer.



Ukrainian companies
The Cabinet of Ministers proposes to increase funding of Naftogaz by 70.5 billion UAH
Ukrgazdobycha is going to buy 6 drilling rigs at 240 million UAH per each
The deficit or blackmail: why Privat simultaneously closed 1600 filling stations
WikborgRein of Norway will assist Naftogaz in court against Gazprom
Cabinet of Ministers has found means to sell Ukrnafta bringing no offence to Mr. Kolomoysky
Mr. Kobolev predicts Ukrnafta’s shareholders’ meeting in the beginning of September
Naftogaz unable to register 6 billion cubic meters of gas
Foreign companies
Kolomoyskyi trying to sue the Stavitsky’s Ukrnaftoburinnya
Ukrainian Gas Transmission System costs $25-35 billions —
Naftogaz’s Head of board
Yuriy Prodan worries about gas reverse reduction to Ukraine
Politics and the world
On the special period in the fuel and energy complex
Royalty to be calculated based on the marginal price of gas for industrial consumers
Government asks to increase royalties for natural gas producing up to 70%
Cabinet failed to sell any licenses for field development
Ukraine imported 12.5 billion cubic meters of gas for $ 3.37 billion for 5 months of 2014
The Government asks the Parliament to increase royalties for oil and gas condensate
The government plans to increase the taxes of private gas producers
Sharp increase of taxes will lead to complete stop of gas production in Ukraine