Ukrainian overview
Economic overview
- The second-largest country by area in Europe (603,628 km2 )
- Population - 46 million
- GDP reach USD 131 bn. in 2014
- WTO member
Gas market
- Ukraine relies heavily on oil and natural gas to meet its energy needs. Ukraine's industries continue to be the most energy intensive in Europe. In 1991 Ukraine consumed 118 BCM making it the world’s third largest gas consumer behind USA and Russia. Consumption of natural gas declined to 58 BCM in 2010 and about40 BCM in 2014
Investment Climate
- Government started to import natural gas in 2014 from Europe to reduce dependency on Russian gas imports.
- Government’s strategy is to encourage energy efficiency in households and industry, raise tarriffs to reflect production costs and market prices, and stimulate investment in country’s substantial domestic hydrocarbon resources to become more self-sufficient.
Natural gas production in Ukraine, bn. m3
Price /1,000 m3 of gas
Fiscal Terms
|
Corporate Profit Tax
monthly payments required
|
now - 18%
Law on CBM provides for zero (0) tax until 1 January 2020
|
|
VAT
monthly payments required
|
now - 20%
|
| 2013 |
Subsoil Use **
quarterly payments required |
Crude Oil & Gas Condensate *
45% of base price per 1 ton (up to 5,000 m. depth)
21% of base price per 1 ton (below depth of 5,000 m.)
Natural Gas & CBM *
55% of base price per 1,000 m3 (up to 5,000 m. depth)
28% of base price per 1,000 m3 (below depth of 5,000 m.)
* base price to be provided by Government
There is a two year royalty relief period for new wells.
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|
Pension & Unified Social Contribution
monthly payments required
|
36-40% (on top of salary) |
** Following these recent changes passed by Parliament, new revisions have been tabled for review.
UKRAINE'S RESOURCES ON GLOBAL MAP
1st place in Europe
8%
SHALE GAS
12
trillions cu. m.
Rest of the World 
Ukraine
1st place in Europe
18%
IRON ORE
28,5
billions tons
UKRAINE HAS LARGE AND WELL EDUCATED WORKFORCE
- 45.7 million people (30th place in the world)
- Urban to rural residence ratio 68.7 % / 31.3%
- 5 cities with over one million residents
- 98% of working-age population - with completed secondary or higher education
UKRAINE HAS GREAT LOGISTICAL ADVANTAGES
