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Supervisory Board during its first meeting is to elect the PJSC's board chairman.
The Ministry of Finance of Ukraine has approved the transformation of state-owned National Energy Company (NEC) Ukrenergo into a private joint-stock company (PJSC) with an authorized capital of UAH 37 billion (US$1.47 billion), which is a prerequisite for certification of the company as an independent electricity transmission system operator.
"The Ministry of Finance has approved the creation of PJSC NEC Ukrenergo. The relevant order was signed by Finance Minister Oksana Markarova. The issue of PJSC's shares will be carried out within the terms stipulated by law, and the state represented by the Ministry of Finance will become their owner," the ministry said, citing an order signed by Finance Minister Oksana Markarova.
According to the ministry, the company's authorized capital will amount to UAH 37.1 billion. At the same time, chairman of the company board should be elected by the PJSC's supervisory board during its first meeting.
"During six months of managing Ukrenergo, the team of the Ministry of Finance managed to achieve the greatest progress in the process of reorganizing the company, which began in 2017. Since February, we have been actively working to achieve the ultimate goal – the transformation of state-owned enterprise National Energy Company Ukrenergo into a private joint-stock company," the press service quoted Markarova.
It is reported the creation of PJSC will result in the effective implementation of legislation on the electricity market, as well as the separation of control over the production of electricity and its transmission, which is one of the conditions for obtaining credit funds in the framework of the Memorandum of Understanding with the EU.
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As UNIAN reported earlier, the state-owned operator of Ukraine's united power grids, Ukrenergo, came under the control of the Ministry of Finance of Ukraine on February 6.
The Ukrenergo's re-subordination from the Ministry of Energy and Coal Industry to the Finance Ministry was due to the need for distribution of control over power generating companies and electricity transmission.
In April 2019, Ukraine's Cabinet of Ministers approved the financial plan of the state-owned operator of the country's integrated power grids, Ukrenergo, for 2019 with UAH 2.359 billion (US$88.1 million) in net profit, which is 2.5% up from the 2018 plan.
UNIAN memo. The national energy company, Ukrenergo, operates trunk and inter-state transmission lines and is in charge of centralized control over Ukraine's integrated power grids.