On 15 March 2022, the Parliament of Ukraine adopted the Law No. 7038-d of February 23, 2022, introducing a differentiated rent for natural gas production (the "Law"). Differentiation of rent implies that the higher the selling price of natural gas, the higher the interest rate.
The new rates are set depending on the depth at which the gas deposits lie, in particular:
In addition, the Law guarantees that the new rent rates will be applied from 1 March 2022 to 1 March 2032. During this period, the amount of rent rates can not be increased.
These guarantees relate, inter alia, to the rent for new wells as of 1 March 2022.
At the same time, such guarantees can not apply to changes in legislation related to defense, national security, public order, and environmental protection.
For further information, please contact Partner Yaroslav Petrov, Counsel Marta Halabala and Associate Kateryna Andarak.