Ukraine raises coefficient for calculating royalties on oil 8.3% for Feb
KYIV. March 7 (Interfax) - The corrective coefficient for calculating royalties on oil and gas condensate for February will be 1.1903, which is 8.3% above its value for the second half of January (1.0991), Ukraine's Economic Development and Trade Ministry said.
This calculation was based on the average cost of Urals oil on the International Petroleum Exchange (IPE), which rose to $119.026 per barrel in February from $109.915 in January, the website said.
Ukraine's Verkhovna Rada (parliament) adopted a law in June 2008 stipulating that royalties for oil and gas condensate must be adjusted on a monthly basis, taking into account the ratio of the average Urals oil price on the IPE to the base price.
The basic price of oil has been UAH560 a tonne until recently, but this was brought closer to $100 in 2012, after the Tax Code was amended on December 22 (UAH7.9880/$1 on March 7).