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Earlier, Kobolyev said that he was going to donate all his income, received as Naftogaz CEO, to charity before the end of the year.
The Supervisory Board of the National Joint-Stock Company Naftogaz of Ukraine has decided to extend the contract with Naftogaz CEO, Chairman of the Executive Board Andriy Kobolyev and set his monthly salary at UAH 2.08 million (US$77,094).
"The new legislation gives the state-owned company's supervisory board the authority to make decisions on contracts with the management," the Ekonomichna Pravda online newspaper wrote on February 28, referring to its source in Naftogaz.
Later the same day, Prime Minister Volodymyr Groysman said that the government had not taken any decisions on concluding a new contract with Kobolyev.
“The government, as a shareholder, has a question about the amount of remuneration paid to the company's [top] management. We appealed to the supervisory board. The government did not take any decisions about the conclusion of a new contract,” Groysman wrote on Twitter.
Earlier, Kobolyev said that he was going to donate all his income, received as Naftogaz CEO, to charity before the end of the year.
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According to the letter from Chairperson of the Naftogaz Supervisory Board Clare Spottiswoode to Ukrainian Prime Minister Volodymyr Groysman, a copy of which is published by Ekonomichna Pravda, Kobolyev's term in office has been extended for three years, starting January 1, 2019.
The Chairperson says that Groysman publicly noted his expectations regarding the revision of the amount of Kobolyev's remuneration, and that it should be a market one.
The company's press service confirmed this information to UNIAN as well.
The Supervisory Board came to the conclusion that it is in the best interest of the company to ensure continued management, extending the tenure of the current CEO for three years starting January 1, 2019.
The letter also says that the decision to extend the contract is based on the salary that was set in the previous contract.
As UNIAN reported earlier, the Cabinet of Ministers on January 16 announced the suspension of contracts with Naftogaz's current management from March 22. The Cabinet also appealed to the company's supervisory board regarding the revision of conditions for the payment of salaries and bonuses to its managers.
In 2018, the Naftogaz Supervisory Board decided to pay $46.3 million in bonuses to its managers following their victory in the legal battle with Russia's Gazprom.
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Taking into account the arbitration award under the gas transit contract, Gazprom must pay Naftogaz a total of $2.6 billion.
In early June, Ukrainian Prime Minister Volodymyr Groysman appealed to the Supervisory Board of the National Joint-Stock Company Naftogaz of Ukraine to review the decision to pay $46.3 million in bonuses to its management due to the company's victory over Russia's Gazprom in the Stockholm Arbitration.
In July, the Cabinet of Ministers also banned the payment of bonuses and rewards in state-owned companies.
Members of Naftogaz Board in 2017 earned a total of UAH 127.7 million (US$4.7 million), according to Naftogaz annual report for 2017.
In particular, Naftogaz CEO, Chairman of the Executive Board Andriy Kobolyev received UAH 47.1 million ($1.7 million).
In total, during 2017 the company incurred approximately UAH 25.5 million ($945,145) in expenses for the operations of the supervisory board.
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.