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Six years of rent decentralization in Lviv Oblast: are hromadas using funds effectively?

Lviv Oblast is traditionally among the leaders in implementing the Extractive Industries Transparency Initiative (EITI) at the regional level.

The day before, on March 13, an online seminar “6 Years of Rent Decentralization in Lviv Oblast: Are Communities Using Funds Effectively” was held as part of the project “Good Governance through GovTech and Transparency”.

“Oil and gas have always been considered key resources that shape the economic landscape of the country and regions. The rent from hydrocarbon production has a major impact on the formation of budgets at all levels. In particular, these revenues enable local communities to ensure the socio-economic development of their territories,” said Bohdan Keivan, Director of the Department of Fuel and Energy Complex, Energy Efficiency and Housing and Communal Services of the Regional State Administration.

At the same time, Oksana Kolosova, Head of the Expert Group of the Ministry of Energy of Ukraine, noted that Lviv region is traditionally among the leaders in implementing the Extractive Industries Transparency Initiative (EITI) at the regional level.

In addition, the Lviv Regional State Administration was one of the initiators and active participants in the development of the draft law on the transfer of 5% of the rent paid by extractive companies for the use of subsoil for the extraction of oil, natural gas and gas condensate to local budgets, and 95% to the state budget (previously, all 100% were directed to the state budget).

During the event, the participants discussed the challenges and benefits for the public, local authorities and companies, and how rent affects the life of communities in general.

At the same time, Maryna Buzan-Svirska, manager of NOVA Energia NGO, presented the EITI Portal, which can be found at the following link: https://eiti.gov.ua/

For reference:

The event was held by NOVA Energia with the support of the German Government within the framework of the project “Good Governance through GovTech and Transparency” in partnership with the Department of Fuel and Energy Complex, Energy Efficiency and Housing and Communal Services of the Lviv Regional State Administration, implemented by the German Society for International Cooperation (GIZ) GmbH in partnership with the Directorate for Resource Efficient Transformation of the Ministry of Energy of Ukraine.

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