Naftogaz obliged to secure government's approval for its subsidiaries' major decisions, deals

REUTERS Ukraine&#39;s Cabinet of Ministers has obliged the Board of National Joint-Stock Company Naftogaz of Ukraine to secure the government&#39;s preliminary approval for important decisions and deals of its subsidiaries. Read alsoU.S. concerned about consequences of changes to Naftogaz&#39;s Charter "Before the approval of a financial plan in accordance with the established procedure, decisions by the board on economic entities where NJSC Naftogaz of Ukraine is a shareholder (founder, participant), i.e. operations stipulated in Articles 70 and 71 of the law on joint stock companies, shall be preliminarily approved by a general meeting of Naftogaz of Ukraine [the company is wholly owned by the government]. This concerns other deals which require preliminary agreement of Naftogaz&#39;s supervisory board," the Cabinet said in a resolution. As UNIAN reported earlier, the Cabinet of Ministers on March 20 announced it had amended the Charter of NJSC Naftogaz of Ukraine regarding the procedure for appointing the head and members of the company&#39;s board (a decree dated March 6). According to the amendments to the Charter, the head and members of the board will now be elected without nomination by the supervisory board. The Cabinet also decided to extend the contract with incumbent CEO of Naftogaz Andriy Kobolyev for another year. As Prime Minister Volodymyr Groysman emphasized, the condition for extending the contract is that the company&#39;s management should not have bonuses and remuneration, and salaries must be at least halved from the current level. The management is also tasked with completing the separation of the country&#39;s gas transmission system before the end of 2020 and fulfilling a plan to boost gas production. The government noted that the company was established in accordance with its resolution of May 25, 1998, with the state represented by the Cabinet of Ministers being the founder and sole shareholder of the company. That is the government represents the general meeting of Naftogaz. UNIAN memo. NJSC Naftogaz of Ukraine is the largest state-run vertically integrated oil and gas holding whose subsidiaries account for about 90% of oil and gas production in Ukraine. Naftogaz develops oil and gas fields, produces crude oil and natural gas. Its core business is also transportation and trade in fuel through its own network of filling stations.

Naftogaz obliged to secure government's approval for its subsidiaries' major decisions, deals

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