1.8 bln UAH of taxes and payments to budgets of different levels were paid by Smart Energy Group based on work results in 2023. Also, 150 mln m3 of gas, 17 thous t of condensate and 11.5 thous t of LPG were produced at the Group's assets. This is a responsible contribution of gas production business of production and investment group Smart-Holding in supporting the economy of Ukraine during the war.
Production and taxes
Volume of produced blue fuel is sufficient to supply gas to 3.8 mln household consumers during the year. 1.8 bln UAH of taxes paid by the Group last year is exactly the amount needed to pay pensions for more than 30 000 Ukrainian pensioners for a year.
Impact of sanctions
Meanwhile, due to non-transparent criteria of the State's sanctions policy, three of the four companies of the Group have been forced to idle for over nine months. This led to the underachievement of production plan by almost 50%. 135 mln m3 of gas, which Ukraine desperately needs during the war, remained unproduced.
"We strive to work effectively in Ukraine and for Ukraine in order to pay taxes, support our teams and their families, have resources for support and post-war development of communities where our assets operate. Sanctions should cause harm to the aggressor, not to the economy and people of Ukraine. But so far, as of January 1, 2024, the state budget has not received 1.35 bln UAH in tax revenues. Each day the fields are idle costs the State 5.5 mln UAH of unpaid taxes and 450 thous m3 of unproduced gas. We hope that this year will bring positive and constructive decisions from the authorities, and we will be able to work for Ukraine at full strength," said Oleksiy Zayets, Acting General Director of Smart Energy Group.
Despite tense circumstances, Smart Energy successfully mothballed Kharkiv wells that were forced to shut down due to the blocking of special permits for gas production. This made it possible to reduce the negative impact on their future productivity until the moment of resumption of operation.
During nine extremely difficult months of 2023, Smart Energy continued to preserve jobs and stability of the Group's operation in general.
Impact of war and aid to the Security and Defense Forces of Ukraine
Prospects for the very existence of business in Ukraine depend entirely on battlefield results. That is why Smart Energy, even having three of the four production companies of the Group shutdown, continues to help Ukrainian defenders. In 2023, a total of 2.7 mln UAH was allocated to support the military and civilians affected by the war.
In particular, 1.8 mln UAH was transferred to the purchase of drones, power equipment, means of combating enemy drones and other equipment important for defenders, several vehicles were handed over as well.
Constant threat from the invaders continues to produce risks. In particular, in October of last year, russian drones damaged one of the assets in Kharkiv province. Due to the damage extent, restoration of the asset will be possible after the victory of Ukraine and resumption of special permits for the subsoil use.
REFERENCE:
SMART ENERGY is a group of companies of oil and gas segment of SMART-HOLDING investment and production group. The group includes public British company with assets in Ukraine, Enwell Energy, and Ukrainian gas production company Ukrgazvydobutok, which operate gas production assets in Poltava and Kharkiv provinces and create jobs in rural areas of frontline regions at their own assets and third-party assets in the supply chain. Before the start of the full-scale invasion, hydrocarbon reserves at gas production assets of Smart Energy Group were estimated according to categories C1+C2 as follows: gas – 22.633 bln m3, condensate - 3.722 mln t.
Due to the State's sanctions policy and suspension of special permits and licenses, three of the four companies of the Group are forced to idle.
SMART-HOLDING is one of the largest investment and production groups in Ukraine, which unites companies of mining and metallurgical, and oil and gas complexes, agriculture, shipbuilding and real estate. 2 300 employees work at the companies of SMART-HOLDING Group.
Due to the State's sanctions policy, suspension of special permits and licenses for the subsoil use, most of Holding's gas production assets were forced to shut down production.
Holding's businesses honestly and transparently fulfill their obligations to the State: based on results of their work in 2023, over 1.9 bln UAH of taxes and payments were transferred to budgets of all levels.
Since the beginning of the full-scale invasion of the russian federation, SMART-HOLDING has allocated over 1.9 bln UAH to support the Armed Forces of Ukraine and for humanitarian aid.
