Cabinet cancels competitive selection of independent members to Naftogaz Supervisory Board

According to the press service of the Ministry of Economic Development, the Cabinet passed the relevant decision on November 10.

"By its decision of November 10, 2017, the government canceled the competitive selection of candidates for the position of an independent member of the supervisory board of Naftogaz of Ukraine. The government also obliged the Ministry of Economic Development to submit to the Cabinet of Ministers of Ukraine proposals for candidates for positions on the supervisory board - both independent members and representatives of the state," the report said.

At the same time, the Ministry of Economic Development performs only a technical function for drafting regulatory and legal acts for their further submission to the government.

Read alsoNaftogaz boosts profits to almost UAH 31 blnAs UNIAN reported earlier, the Nomination Committee of the Economic Development Ministry in 2016 defined three candidates for the positions of independent members of the Naftogaz Supervisory Board, namely Marcus Richards, Paul Warwick, Charles Proctor. The Ukrainian government added Yuliya Kovaliv and ex-energy minister Volodymyr Demchyshyn as their representatives to the board.

In mid-April 2017, Kovaliv, who chaired the supervisory board, resigned. Early in September, Proctor announced his plans to resign as well.

In September 2017, the remaining independent members of the Naftogaz Supervisory Board Paul Warwick and Markus Richards also said they intended to quit. They claim the decision is a result of the government curtailing the reforms.

On October 5, the two have officially resigned. Ukraine's international partners have expressed concern over the situation, which could impede the reform of the energy sector. At the moment, it is the Ukrainian government that performs the functions of the supervisory board at Naftogaz.

Read alsoGazprom appeals Stockholm Arbitration decision in dispute with NaftogazPreviously, the selection function of independent members of the Supervisory Board was carried out by a nominating committee, which consisted of government officials and representatives of international organizations.