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CEO Victor Gladun expressed his vision of a way out of the gas and oil crisis

CEO Victor Gladun expressed his vision of a way out of the gas and oil crisis

May 27, Kiev – CEO of JV PPC and JKX Group, Victor Gladun, shared his expert opinion with Interfax-Ukraine on building a strategy and overcoming the crisis in the gas and oil sector.

The gas and oil industry is one of the largest sources of filling the state budget of Ukraine. A significant decline in gas and oil demand and large reserves in international markets have led to extremely low product prices. First of all, this will affect the investment opportunities of companies.

“A decrease in investments in new drilling will have a significant impact on hydrocarbon production indicators for the next 1-3 years of activity […] a decrease in production leads to a decrease in the tax base and as a result of a reduction in tax payments,” Victor Gladun notes.

The Director General expressed his vision of the necessary support from the Government of Ukraine:

• government support through the introduction of incentives to increase domestic production;
• unification of rental rates for all wells (gas and oil) with a depth of up to 5.000 m – 12%;
• introduction of duties on imported petroleum products: LPG, diesel fuel and gasoline.

“Today is the time at the state level – think strategically! To fill the budget in the short term through taxation of imported petroleum products and through stimulating investments to unify and decrease the annuity rate for oil and gas production for the strategic development of the country’s economy, ”concludes Victor Gladun

More about this at the link: https://ua.interfax.com.ua/news/blog/665094.html