Accounting Chamber: Ukraine is losing billions of hryvnias of rent due to the war

What happened? Due to the full-scale war of russia against Ukraine, the state and local budgets lost more than 3 billion UAH of rent in the first half of 2022 alone. Thus, the receipt of rent for the transit of ammonia through the territory of Ukraine decreased by 2.4 times, for use of forest resources – by 1.4 times. 

Source. The press service of the Accounting Chamber.

Details. Before 2022, the transit transportation of russian ammonia brought the state more than 1 billion UAH annually. Now the activity of the only operator of the main ammonia pipeline in Ukraine has been suspended and it does not pay rent. In total, from 2020 to the first half of 2022, the state budget received more than 3.5 billion UAH of rent for transportation, 80% of the amount – for the transit of ammonia.

In addition, the volume of revenues from rent for use of forest resources has decreased. From January 1, 2022, the rate of the corresponding rent was raised by 14.5%. But due to the temporary occupation by russia of part of the territories of Ukraine where timber was harvested, in the first half of last year, rent revenues to budgets of all levels decreased by almost 31%. During the period from 2020 to the first half of 2022, forest exploitation brought 1.6 billion UAH to the state budget and another 2.3 billion UAH to local budgets.

Revenues from water use have decreased as well – in the first half of 2022, due to the war, rent revenues shortfall in the consolidated budget amounted to 162.3 million UAH. 69% of users did not pay the appropriate rent.