The Parliament adopted in general the draft law on tying rent to Ukrainian gas prices

At its meeting on September 20, 2022, the Verkhovna Rada of Ukraine (Parliament) adopted in its entirety draft law No. 7732 on amendments to the Tax Code of Ukraine regarding the peculiarities of taxation with rent for the use of subsoil for natural gas production.

268 Deputies voted "for" the relevant bill. Deputy from Holos Yaroslav Zheleznyak reports this.

This bill envisages changing the approach to determining the actual gas sale price, from which rent for natural gas is calculated for production companies.

From now on, temporarily for the period while the export of gas from Ukraine is prohibited, the actual gas sale price produced in Ukraine from August 1, 2022, is the maximum of the following values:

• The weighted average price of natural gas supplied by producers in accordance with contracts with Naftogaz concluded as a result of auctions at organized trading platforms.
• The weighted average price of natural gas supplied by producers to other customers (except Naftogaz), in accordance with contracts concluded as a result of auctions at organized commodity platforms.
• The arithmetic average price of UA-VTP (Front month), which is calculated as the arithmetic average value between the Bid and Ask prices in Argus and ICIS reports.

Every month by the 10th, the Ministry of Economic Development publishes on its website the indicators determined by this law and the actual gas sale price.

It will be recalled that previously the actual gas sale price was defined as the arithmetic mean value between the average customs value of imported gas and quotations on the TTF.