Business is shocked by the tax stranglehold of the “reformer” Yatsenyuk
Kiev, December 04 (Navigator, Vladimir Mikhailov) – The policy of the current Kyiv government of Arseniy Yatsenyuk, in particular, raising taxes on the extraction of natural resources, leads to a halt in investment in oil and gas production in Ukraine, although previously the authorities called this task a priority for reducing dependence on Russia.
This was stated by the participants of the conference on investment in Ukraine, which took place in Kyiv.
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“Ukraine doubled taxes on the extraction of natural resources for private owners in August. It was declared that this was a temporary measure, for several months, and the companies perceived it as temporary,” said Anna Galtsova, a representative of the HIS-Cera company. – But the situation is very difficult. This change in the tax regime was the fifth in four years. This raises concerns that high taxes will become permanent rather than temporary. The long-term prospects of these companies are questionable. These excessive taxes hit the group of producers who provide new rates of product growth. They invest in new technologies and in the development of hard-to-reach deposits. There is no doubt that the government should take its piece of the pie. But we need to share the profits fairly.”
Jim Brown, president of Vanco Prikrechenskaya LTD, agrees with this opinion.
“This is some kind of flawed logic. The same applies to the resolution adopted in November, according to which NJSC Naftorgaz became the only gas seller. The consequence of this logic is that investment will stop just when a boost is needed,” he says.
“No government has caused as much harm to the oil and gas industry as the current one,” says Robert Bensch, managing director of Pelicort LLC, shareholder of the oil and gas production company Cub Energy Inc. – It is Yatsenyuk who is the reason for the current situation in the oil and gas industry, and not the conflict in the East. “At the end of the day, we don’t have to invest in this country; we can stop investing and invest in other projects.”
He also commented on Arseniy Yatsenyuk’s registration of a bill on a special period in the fuel and energy complex on November 27: “Look how Yatsenyuk tried to promote this law. I wouldn't want to spend money in a country like that."
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