Cabinet Pushes For Oil & Gas Royalty Increase.

In the draft law on the 2006 state budget, the government asked the Verkhovna Rada to increase oil extraction royalties by 59.3%, to USD 173.5 per mt. In addition, the Cabinet suggested that royalties for gas condensate extracted from wells up to 5,000 m deep, be raised by 59.3%, to USD 173.5 per mt, and royalties for condensate extracted from the wells more than 5,000 m deep, be raised by 30.0%, to USD 64.4 per mt. Gas extraction royalties are to remain the same, except for gas extracted from wells with a depth of more than 5,000 m and from offshore deposits. Concorde Capital: If enacted the new budget will be a major blow to all Ukraine?s hydrocarbon extractors, Ukrnafta (UNAF: HOLD) included.