Sept 22 (Reuters) - JKX Oil & Gas Plc said it wouldsubstantially reduce its capital expenditure to offset theimpact of higher production taxes introduced by the Ukrainiangovernment last month.
The company said on Monday that the additional taxationcosts amount to about 25 percent of its budgeted capitalexpenditure programme in Ukraine for 2014.
JKX, which has most of its production assets in Ukraine andRussia, said last month that it would take "operational andfinancial measures" after Ukraine almost doubled its gasproduction tax rate to 55 percent between Aug. 1 and the end ofthe year.
The additional production tax costs due to the legislationwas $10 million for the five-month period from August toDecember 2014, the company said. (Reporting by Roshni Menon in Bangalore; Editing by GopakumarWarrier)
