Rada passes bill on sending 10% of state revenues from PSAs to local budgets

Ukraine's parliament has adopted at second reading a bill on sending 10% of state revenues from the sale of mineral resources extracted under production sharing agreements (PSA) to local budgets.

Some 326 deputies voted for the decision on Tuesday.

According to the document, the regional council on whose territory mineral resources are extracted, will receive half of that 10%, a quarter of the amount will be sent to the district council, and another quarter to the village council.

The bill proposes the withdrawal of these funds from the revenues of the general fund of the national budget and including them in local development budgets.

Draft law No. 3295-1 was developed majority MP from Ivano-Frankivsk region Yuriy Derevianko and registered in the parliament on October 1. It was adopted at first reading on October 10.

As reported, Ivano-Frankivsk regional council has agreed the draft PSA between Ukraine, Chevron Ukraine B.V. and Nadra Oleska LLC for the extraction of hydrocarbons on Oleska field (Ivano-Frankivsk and Lviv regions).