Government approves Naftogaz corporate governance plan

Kobolev stressed that the adoption of such plan was a strategically important step in reforming the company, because, in the medium term, it would allow the state holding to attract loans from the European Bank of Reconstruction and Development in the amount of $300 million, as well as $500 million in loan funds from the World Bank. In addition, according to Kobolev, this plan will help establish a broader Supervisory Board of the NJSC Naftogaz Ukrainy, which may include representatives from international financial organizations.

In addition, Kobolev noted the adoption of the plan was one of the steps to reform Naftogaz, the process that started back in 2014 with the reform principles set forth in the coalition agreement, when the members of parliament declared they were ready to implement new principles of corporate governance in the whole public sector.

Naftogaz chief said the adoption of company's corporate governance reform plan would eliminate all inconsistencies between the various agencies that were related to Naftogaz.

As UNIAN reported earlier, the reform of Naftogaz Ukrainy is one of key objectives the Ukrainian government has been pursuing, as well as one of key creditors' demands, who claim that overall reform of the energy sector is a major precondition for economic growth in Ukraine. Representatives of Naftogaz noted that following the implementation of the corporate governance reform plan, the state holding is set to launch a reform of the gas transportation system management.

Naftogaz Ukrainy is the largest state-owned vertically integrated oil company in Ukraine. The enterprises managed by the company produce more than 97% of gas and oil in the country.

The company is engaged in mining, oil and gas extraction, transportation, and the sales of oil products through its own network of petrol stations.