Ukrainian gas producers - Parliament initiates tax increase for sector in 2013

Обзоры по компаниям и отраслям 23.07.2012 Oil & Gas / Desk Note After the Ukrainian parliament substituted the current gas production royalty for a unified ad valorem rate of 17% as of 2013 just a month ago, it went further to raise the newly adopted rate 1.5x. This change, if signed by the president, will undermine the profitability of independent gas production companies, effectively decreasing their 2013 EBITDA by up to 20%, with Kulczyk Oil and JKX Oil & Gas to be the largest victims.