Ukrainian government sets out plan to reboot energy sector

Ukraine's government has approved an action plan to refresh the supervisory boards and executive bodies of fuel and energy companies as part of a full reboot of the energy sector.

Source: Ukrainian Prime Minister Yuliia Svyrydenko

Details: Ukrainian Prime Minister Yuliia Svyrydenko said on 17 November that the priority is to renew management by forming new supervisory boards across all state-owned energy companies, including:

1. Energoatom, Ukraine's nuclear power company – to form a new supervisory board;
2. Naftogaz of Ukraine, Ukraine's largest national oil and gas company – to organise a competitive selection to the supervisory board and form the executive bodies of the Naftogaz Group (Ukrgazvydobuvannia, the largest Ukrainian gas producer; Ukrnafta, the largest Ukrainian oil company; and Gas Distribution Networks of Ukraine)
3. Ukrhydroenergo, Ukraine's state-owned enterprise that administers hydropower plants – to appoint a state representative to the supervisory board and to hold an open selection for a chief executive
4. Gas Transmission System Operator of Ukraine – to replace the state representative on the supervisory board and finalise the selection for a chief executive
5. Ukrenergo, Ukraine's state-owned electricity transmission operator – to replace the state representative on the supervisory board
6. Centrenergo, a major Ukrainian state-owned energy company; Energy Company of Ukraine; Ukrainian Distribution Grids; Regional Electric Networks; Nyzhnodnistrovska Hydroelectric Power Plant; and Kremenchuk Thermal Power Plant – to establish new supervisory boards
7. State-owned company Harantovanyi pokupets (Guaranteed Buyer), a state-owned enterprise that represents the interests of citizens and the state in the functioning of the electricity market – to convert into a joint-stock company and to establish a new supervisory board
8. The plan further provides for updating the charters, supervisory board regulations and the principles governing their formation at state-owned energy companies, in line with the OECD Guidelines on Corporate Governance of State-Owned Enterprises.

Quote: "The immediate task this week is to approve a new supervisory board for Energoatom."

Background:

• Ukraine's President Volodymyr Zelenskyy has set out measures to reboot major state-owned companies following a meeting where he agreed upon an action plan with Prime Minister Yuliia Svyrydenko and Economy Minister Oleksii Sobolev.
• During a meeting with Svyrydenko on 14 November, Zelenskyy said that the results of the audit of state-owned companies, announced after the National Anti-Corruption Bureau (NABU) investigation, would be followed by personnel decisions.
• On 13 November, Svyrydenko said that Ukraine will carry out an audit of all state-owned companies, particularly those in the energy sector.
• Ukrainian anti-corruption agencies have exposed a large-scale corruption scheme in the energy sector in Ukraine, co-organised by Zelenskyy's associate Tymur Mindich.

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