JKX Oil & Gas says to take 'measures' after Ukraine tax hike

Mon Aug 4, 2014 2:42am EDT

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Aug 4 (Reuters) - JKX Oil & Gas Plc said it would take "operational and financial measures" to protect its interests after the Ukrainian government passed emergency legislation that will increase oil and gas production taxes.

The company, which has most of its production assets in Ukraine and Russia, said it was evaluating the impact of the legislation on its investment programme.

JKX said the most significant tax increase would apply to gas production, where the rate would approximately double to 55 percent between Aug. 1 and the end of the year.

The company gave no further details about the measures that it plans to take.

JKX said in its half-yearly report on July 28 that its operations in the region had not been affected by unrest in Ukraine or the deterioration in relations between Ukraine and Russia. (Reporting by Roshni Menon in Bangalore; Editing by Robin Paxton)

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