---
title: "Partial Export of Ukrainian Gas: How European Price Will Boost Budget Revenues"
description: "AGPCU Executive Director Artem Petrenko stated that partial export of Ukrainian gas will increase budget revenues because royalties are calculated at European prices. With reserves exceeding 15 billion cubic meters, the mechanism benefits both companies and the state."
date: 2026-10-19T16:04:48.105Z
lang: en
url: https://xab.info/en/posts/partial-export-ukrainian-gas-european-price-budget
tags: [ukraine-gas, gas-export, budget-revenue, energy-security, agku, natural-gas-storage]
author: "Darya Fomina"
publisher: "XAB.info"
---

# Partial Export of Ukrainian Gas: How European Price Will Boost Budget Revenues

![Worker in a hard hat opening a valve on a yellow gas pipe under a blue sky](https://xab.info/media/2026/10/19/chastichnyy-eksport-ukrainskogo-gaza-europeyskaya-cena-byudzhet/chastichnyy-eksport-ukrainskogo-gaza-europeyskaya-cena-byudzhet-1.webp)

## Key Points

- Royalties for exported gas are calculated at European prices, increasing budget revenues
- An additional revenue channel is profit tax from export sales
- Ukraine has accumulated about 16 billion cubic meters of gas, exceeding the plan by over 1 billion cubic meters
- The private sector receives guaranteed demand, while the state gets additional taxes and foreign currency earnings

Artem Petrenko, Executive Director of the Association of Gas Producing Companies of Ukraine (AGPCU), stated that the partial export of Ukrainian gas can significantly increase revenues to the state budget. According to him, the key mechanism is that the royalty for exported volumes is calculated based on the European gas price, which significantly exceeds the domestic one. This means that even if the current production level is maintained, the state will receive additional tax revenues without the need to increase production volumes.

### Royalty at European Price: How the Mechanism Works

Petrenko explained that according to the Tax Code of Ukraine, companies exporting gas are required to pay royalties — a special tax — not at the domestic price established on the Ukrainian market, but at the price operating in Europe. "The state, for its part, will have more funds. Why? Because if companies export gas, then under the Tax Code of Ukraine they must pay royalties, that is, a special tax, not from the price that has currently formed in Ukraine, which is completely understandable, but at the price that is in Europe," he emphasized. Thus, the gap between the domestic and European prices automatically transforms into additional budget revenues.

### Profit Tax as the Second Channel of Revenues

In addition to royalties, the growth of revenues from gas sales in export markets entails an increase in profit tax. Petrenko noted that the combined effect of the two tax mechanisms — royalties and profit tax — allows the state to receive a significantly larger volume of funds from increased gas production and sales. "This will then allow us to have, accordingly, more funds from royalty payments, accordingly, more profit tax funds, that is, the state will receive more funds from increased production," explained the AGPCU director.

### Win-Win for Both Parties Under a Transparent Mechanism

According to Petrenko's assessment, provided a transparent and controlled export mechanism is in place, both parties benefit. Private gas producing companies receive guaranteed demand for a portion of the produced resource, which reduces market risks and ensures revenue predictability. The state, in turn, receives additional tax revenues necessary to finance state needs. "Private companies will have, first of all, a guaranteed demand for gas, and the state, in case of realization, will have more taxes and funds necessary for the state budget," emphasized the Executive Director of AGPCU.

### Context: Gas Reserves Exceed Planned Targets

The statement about possible partial exports came against the backdrop that Ukraine, according to government estimates, may accumulate more than 15 billion cubic meters of gas by the beginning of November — a volume that, according to the Cabinet of Ministers' calculations, is sufficient to get through the heating season. At the same time, according to Volodymyr Omelchenko, Director of Energy Programs at the Razumkov Centre, the country has currently accumulated about 16 billion cubic meters of natural gas, which exceeds the planned target by more than 1 billion cubic meters. It is the presence of excess reserves that creates the prerequisites for discussing partial exports without threat to domestic energy supply.

### Strategic Significance: Restoration and New Drilling

The AGPCU also stressed that controlled gas exports will provide the state not only with additional tax revenues, but also with foreign exchange earnings. For the producers themselves, export earnings will become a source of funds for restoring infrastructure after Russian attacks, protecting facilities, and financing new drilling. Thus, partial export is considered not as a one-time measure, but as an element of a long-term strategy to strengthen energy security and the financial stability of Ukraine's gas industry.

## Fact-Check & Sources

- [Европейская цена на частичный экспорт газа увеличит платежи в бюджет, - эксперт](https://www.rbc.ua/ukr/news/evropeyska-tsina-chastkoviy-eksport-gazu-1792425294.html) - Primary source. Statement by Artem Petrenko (AGPCU) regarding the European-price royalty mechanism, profit tax, and guaranteed demand for companies. Reserve data: 15 billion cubic meters (government estimate for early November) and 16 billion cubic meters (V. Omelchenko, Razumkov Centre). Context of post-attack restoration and new drilling.

## FAQ

### Why will gas exports increase Ukraine's budget revenues?

According to the Tax Code of Ukraine, royalties for exported gas are calculated at the European price, which is higher than the domestic one. This increases royalty and profit tax payments flowing into the state budget.

### How much gas has Ukraine accumulated currently?

According to Volodymyr Omelchenko from the Razumkov Centre, Ukraine has accumulated about 16 billion cubic meters of natural gas, exceeding the planned target by more than 1 billion cubic meters. By the beginning of November, according to government estimates, the volume may exceed 15 billion cubic meters.

### What do private companies get from partial exports?

According to AGPCU Executive Director Artem Petrenko, private gas producing companies receive guaranteed demand for part of the produced gas, as well as funds for post-attack recovery, facility protection, and new drilling.