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RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of December 3, 2020 No. 1194

About approval of the Procedure for determination of compensation which is provided to subjects of the natural gas market to whom special obligations are assigned

According to part seven of article 11 of the Law of Ukraine "About the natural gas market" the Cabinet of Ministers of Ukraine decides:

1. Approve the Procedure for determination of compensation which is provided to subjects of the natural gas market to whom special obligations which is applied are assigned.

2. To the public auditing service together with the Department of Energy, the National commission performing state regulation in spheres of power and utilities and the State Tax Administration according to the Procedure for conducting check by the working groups of the central executive bodies approved by the resolution of the Cabinet of Ministers of Ukraine of June 30, 2006 No. 886 (The Official Bulletin of Ukraine, 2006, No. 27, Art. 1935; 2007, No. 37, of the Art. 1453) to perform till July 1, 2021 compensation calculation to joint-stock company "The Naftogaz Ukrainy national company of the expenses which are not covered by the income performed for the purpose of execution of special obligations for providing public concerns in the course of functioning of the natural gas market and to report about results to the Cabinet of Ministers of Ukraine.

Prime Minister of Ukraine

D. Shmygal

Approved by the Resolution of the Cabinet of Ministers of Ukraine of December 3, 2020, No. 1194

Procedure for determination of compensation which is provided to subjects of the natural gas market to whom special obligations are assigned

1. This Procedure determines the mechanism of calculation of compensation provided to subjects of the natural gas market to whom according to the Law of Ukraine "About the natural gas market" special obligations for providing public concerns in the course of functioning of the natural gas market are assigned (further - compensation).

2. Provision of compensation is performed at the expense of the government budget.

Calculation of compensation is made by subject of the natural gas market which performed special obligations.

3. Compensation is calculated by formula:

рис.1 к Пост. от 03.12.2020 г. №1194

where To - compensation which is determined for settlement period, one thousand hryvnias. Information on the monthly amount of compensation is specified in column 8 of the table of appendix 1;

i - month during the settlement period;

N - the number of months in settlement period;

Vziim - cost of 1 thousand cubic meters of inventories of the imported natural gas which is calculated proceeding from actual cost of 1 thousand cubic meters of inventories of the imported natural gas for the beginning of settlement period determined according to international accounting standards 2nd "Inventories" and accounting policy of subjects of the natural gas market to whom special obligations (without value adjustment of inventories to the net value of their realization), weighted average price of acquisition of the imported natural gas and costs for pumping gas to underground storage warehouses are assigned. Information on cost of 1 thousand cubic meters of inventories of the imported natural gas corresponds to actual data of financial accounting and it is specified monthly in column 1 of the table of appendix 1;

Oriim - sales amount of the imported natural gas for requirements satisfaction of consumers which subjects of the natural gas market to whom special obligations are assigned (further - consumers), in it during the settlement period deliver month gas, to one million cubic meters. Information concerning sales amount of the imported natural gas is specified monthly in column 2 of the table of appendix 1;

Vee - other economically reasonable expenses of subjects of the natural gas market to whom special obligations are assigned, in it month, connected with execution of special obligations by it in case of realization of the imported natural gas. Information of rather monthly size of other economically reasonable expenses is specified in column 3 of the table of appendix 1. Detailed calculation of other economically reasonable expenses is specified in form according to appendix 3;

Tsriim - weighted average price of realization of the imported natural gas for requirements satisfaction of consumers in it month without rates for transportation services and to distribution of natural gas, and also the taxes and fees included in realization value of the imported natural gas according to the Tax code of Ukraine, hryvnias for 1 thousand cubic meters. The relevant information is specified in column 5 of the table of appendix 1. Detailed calculation of weighted average price of realization of the imported natural gas for requirements satisfaction of consumers is specified monthly in form according to appendix 2;

Oriimi - sales amount of the imported natural gas for requirements satisfaction of consumers in it month during the settlement period, one million cubic meters. Information concerning sales amount of the imported natural gas is specified in column 2 of the table of appendix 1;

Tsriim x Oriim - income gained from execution in case of realization of the imported natural gas of the special obligations assigned to subjects of the natural gas market to whom special obligations in i-m month, without rates for transportation services and to distribution of natural gas, and also the taxes and fees included in realization value of natural gas according to the Tax code of Ukraine, are assigned by one thousand hryvnias;

KP - coefficient of admissible profit level of subjects of the natural gas market to whom special obligations which constitutes 5 percent are assigned.

Cost of 1 thousand cubic meters of inventories of the imported natural gas is determined by the following formula:

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