Public joint-stock company Ukrgazvydobuvannia is surprised and alarmed with the refusal of Kharkiv Regional Council to approve development of some gas fields in the region, the press service of the company has said.

"Ukraine's State Service of Geology and Deposits has received an application from Ukrgazvydobuvannia seeking to receive new permits to develop fields. However, during the February 23 session Kharkiv Regional Council refused to approve the issue of the permits. This incident is unclear for us and arouses alarm. We have a long experience of fruitful cooperation with Kharkiv Regional Council," the press service said, citing Director of Shebelynkagazvydobuvannia Yuriy Fesenko.

The press service said that the permits can be issued for the Mazharivske, Pidenno-Kobzivske, Pivnichno-Orylske, Brytaiske, Lozova and Krasnohradske fields.

The company said that from 2018 5% of gas royalty will be sent to local budgets. Last year the company sent UAH 20 million for development of infrastructure of Kharkiv region under a social agreement.

Ukrgazvydobuvannia, which is wholly owned by Naftogaz Ukrainy, is Ukraine's biggest gas producer, accounting for about 75% of natural gas production.