Ukrainian overview

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 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.
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

 

Rest of the World Ukraine

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