Naftogaz Funds 20% of Ukraine's Budget

State-owned Naftogaz Ukrainy said August 9 it paid hrvynia 78.1bn ($2.9bn) of taxes and dividends to Ukraine's state budget in the first seven months of 2018, amounting to 19.8% of the total state budget.

Naftogaz Group remains the largest taxpayer in Ukraine: according to its full year 2017 results, its total tax and dividend payments to the state budget were hrvynia 107.3bn ($3.95bn).

Continuing such contributions into the Ukrainian treasury will depend on Russian transit volumes continuing across Ukraine post-2019, and a satisfactory negotiation to how such transit fees would be paid involving Moscow and Kiev, talks about which the European Union is mediating. Experts from all three parties are due to meet mid-September, after talks in Berlin last month agreed an outline for future talks.

Gazprom has threatened to shift remaining transit flows via Ukraine post-2019 to two new pipes: TurkStream is already being built; the other Nord Stream 2 has most permits but has yet to start construction.