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As part of the governance reform of the National Joint Stock Company Naftogaz of Ukraine, the Cabinet of Ministers of Ukraine has adopted new Articles of Association of the company and transferred 100% of shares of the holding company that are owned by the state under management of the Ukrainian Ministry of Economic Development and Trade, as stated in Government Decree No. 1002, published on its website.
As reported, the newly adopted Articles of Association, as well as the Regulation on the Supervisory Board will become effective from April 1, 2017.
"There shall be no interference and obstruction of economic activity on the part of public authorities, political parties and civil organizations and their officials. Management of corporate rights (shares, participatory interest) of legal entities, of which Nafogaz is a shareholder (founder, participant), shall be carried out by the company independently, through its authorized bodies in accordance with the articles of association. The Supervisory Board shall consist of five people, approved by the Ministry of Economic Development and Trade as the company's shareholder. Three members of the Supervisory Board shall meet the independence criteria defined by the legislation and the regulation on the Supervisory Board of the company," the government decree reads.
Read alsoNaftogaz: gas supplies may be cut off to nearly 300,000 households on Jan. 1Аccording to the decree, the Ministry of Energy and Coal Industry of Ukraine is expected to transfer Naftogaz's shares to the Economic Ministry within a ten-day period. Naftogaz will register new Articles of Association and adopt all related documents by April 1, 2017.
Read alsoNaftogaz increases amount of claims against GazpromAs UNIAN reported earlier, the adoption of new Articles of Association of the National Joint Stock Company Naftogaz of Ukraine is the basis for reforming the state holding, as agreed with one of the country's key lenders - the European Bank for Reconstruction and Development. Once implemented, it will enable the receipt of a $300 million loan from the EBRD to finance the purchases of natural gas on the EU market. Funds will be provided on the basis of a revolving loan facility with the possibility of renewal.