PM assures companies investing into an increase in production of Ukrainian gas to receive preferential tax regime

Ukraine can reach energy independence within five years if it increases its own gas production due to a new tax policy in the energy sector and together with partners from the US and the EU implements energy efficiency programs, Prime Minister of Ukraine Arseniy Yatsenyuk stated this during an hour of questions to the Government at the Verkhovna Rada of Ukraine on Friday, 17 July.

The Prime Minister recalled that last year, especially due to the support of U.S. partners, Ukraine managed to diversify gas supplies to Ukraine, "If earlier we were totally dependent on Russian gas, today we purchase about 70% of gas in the EU member states."

"The goal of the Government of Ukraine is to make Ukraine completely energy independent within ten years. We have to get off the Russian dependence’s needle," he stressed.

To accelerate the process, according to the PM, it is necessary to increase the volumes of natural gas. To do this, the Government proposes to the Parliament a package of legislation to change the rates and tariffs in production in the energy sector.

 These changes, Arseniy Yatsenyuk underlined, would not affect enterprises with joint venture agreements, "70% of joint activities should be taxed, because these are those gas fields that have been extracted from state-owned companies via shady schemes and re-legalized under private companies."

But every company that wants to invest into Ukraine, in order to increase the volumes of natural gas, will receive preferential tax regime," he stressed.

"We hope that if we, on the one hand, extend the amount of domestic production due to the new tax policy in the energy sector and, on the other hand, together with our American and European partners launch energy efficiency programs, the target for energy independence of Ukraine can be achieved within five years," the Prime Minister emphasized.

Also following the first Ukraine – U.S. Business Forum, the U.S. company TrailStone announced its plans to enter the Ukrainian market in fall 2015.

Moreover, the independent American company Frontera has agreed with NJSC Naftogaz Ukrainy on the joint exploration and development of oil and gas in Ukraine. Frontera will also consider the realization of LNG import project via the capacity of American company in Georgia.