The Cabinet of Ministers of Ukraine has submitted a draft law to parliament proposing the increase of royalties on the use of deposits from 20% to 70% for public joint-stock company Ukrgazvydobuvannia and public joint-stock company Ukrnafta, each with a state stake of 50% plus one share.

Thus, if the parliament amends the Tax Code, royalties for gas extracted at a depth of up to 5 kilometers will grow from 20% to 70% for the above-mentioned companies from which gas stocks for household needs is produced. Royalties for gas extracted at a depth of over 5 kilometers will remain unchanged – at 14%.

"Taking into account the changes in the policy of regulating the prices of natural gas, which foresees the gradual liberalization of tariffs and the provision of direct budget support to vulnerable people, the reduction of cross-subsidizing, a necessity of taking a part of extra profit, which gas extracting companies will receive, to the national budget has appeared. The funds will be used for direct support of households," reads an explanatory note to the document.