7 Jan 2011 07:00
6 Cavendish Square, London W1G 0PD, England, UK
Tel: +44 (0)20 7323 4464 Fax: +44 (0)20 7323 5258
Web site: http://www.jkx.co.uk
7 January 2011
JKX OIL & GAS plc ("JKX")
NEW UKRAINIAN TAX CODE
Following the December ratification by the Ukrainian parliament a new tax code takes effect in Ukraine as from 1st January 2011. JKX has sought clarification and advice from Ukrainian tax experts regarding the expected impact of these changes on JKX's Ukrainian operating subsidiary, Poltava Petroleum Company ("PPC"). Whilst the detailed effect is yet to be clarified, it is apparent that PPC will be subject to a substantial increase in unified production related taxes albeit that this will be partially mitigated by a progressive reduction in the rate of corporate tax from the current level of 25% to 16% by 2014. The overall impact of these changes is anticipated to be an immediate increase in PPC's effective tax rate from approximately 30% to approximately 50%. The effect at Group level will be reduced by the introduction of production and revenues from JKX's Russian subsidiary, Yuzhgazenergie LLC. In addition, JKX is exploring other options to ameliorate the impact of the tax changes in Ukraine.
ENDS
For further information please contact:
Catherine Maitland/ Alexandra Stoneham: | Cardew Group | 020 7930 0777 |