Photo from UNIAN
Ukrainian Prime Minister Volodymyr Groysman has instructed the Cabinet of Ministers to set up an ad hoc group to reform oil and gas giant, NJSC Naftogaz of Ukraine.
The Cabinet will introduce participatory governance of this strategic asset and has already established an ad hoc group to reform Naftogaz and its subsidiary Ukrtransgaz, the state-owned operator of the Ukrainian gas transport system.
The group, which is chaired by Deputy Prime Minister Volodymyr Kistion, comprises experts from the World Bank, the European Bank for Reconstruction and Development, as well as U.S. Extraordinary and Plenipotentiary Ambassador to Ukraine, Marie L. Yovanovitch.
"The parties have agreed that the ad hoc group will immediately start working out specific measures to reorganize Naftogaz and improve the governance of Naftogaz and Ukrtransgaz," the government said.
"The parties have further agreed to transfer management of Naftogaz to the Cabinet as a collective body."
The Ukrainian prime minister insisted that the company's reform should be carried out in the shortest possible term, and that this process should facilitate the creation of a competitive gas market. The first meeting of the ad hoc group is said to be held in the coming days, and next week the group experts will report to the government on the results of their work.
UNIAN memo. NJSC Naftogaz of Ukraine is Ukraine's largest vertically integrated state-owned oil and gas producer whose companies account for more than 97% of domestic production of oil and gas. Naftogaz is engaged in mining, oil and gas extraction, transportation and sale of fuel through its own network of filling stations.
Read alsoDecision on amending Naftogaz charter halted due to public reaction – KubivActing in compliance with the requirements of the European Union's Third Energy Package, in early December 2015 the Cabinet initiated the reform of Naftogaz providing for the separation of the company's activity, namely extraction, transportation and gas supplies to end consumers. Further, in the framework of reforming the company's governing structure the government initiated the transfer of 100% of the company's shares that are owned by the state under management of the Ukrainian Ministry of Economic Development and Trade.
In September this year, the Economy Ministry issued a decree, which adopted a new statute of Naftogaz, according to which the company had been denied the authorities to control Ukrtransgaz.
Yet, the Economy Ministry canceled its previous decision on changing the statute of NJSC Naftogaz of Ukraine due to high public response to this issue.