Cub Energy Inc. comments on the newly enacted law reducing natural gas royalties on new wells drilled in Ukraine.

On December 30, 2017, Ukraine President Petro Poroshenko signed a new law reducing the natural gas royalty rate on all new wells drilled after January 1, 2018 from 29% to 12%. The law states that Parliament cannot change this law for a minimum of five years, being January 1, 2023, at which time Parliament may leave the law in place or may amend the royalty rate.

Mikhail Afendikov, Chairman and CEO of Cub said: 
“The Ukraine parliament followed through on their commitment to encourage domestic production of natural gas. The reduced royalty rate of 12% coupled with an 18% corporate tax rate and high natural gas price environment provides renewed incentive to invest in growing the country’s natural gas resources.”