PM believes gas royalty should be cut to 12% from 2018

14:47, 14.04.2017 1 min read

Ukrainian Prime Minister Volodymyr Groysman has said that gas royalty should be reduced to the level of 12% from 2018 for all producers, he said in parliament on Friday.

"Recently at a meeting with Petro Poroshenko Bloc we discussed the creation of favorable conditions [for boosting gas production]. There are two most crucial conditions: gas royalty should be reduced from 2018 and the single royalty for all producers of 12% should be introduced. I think that this approach could be acceptable and we would be able to speed up production. The second approach is deregulation," the prime minister said.

As reported, at present gas royalty is set at 14-20% depending on the depth of wells.

At the end of 2016 parliament rejected a bill cutting royalty to 12%.