Cabinet sacks Naftogaz chief Kobolyev

The government at its meeting on Wednesday, April 28, dismissed Andriy Kobolyev from the post of Chairman of NJSC Naftogaz of Ukraine.

That's according to the Cabinet's press service.

The move followed consideration of the company's annual report for 2020. Last year, Naftogaz saw a net loss of UAH 19 billion, with the profit target set at UAH 11.5 billion.

"Following the general meeting of shareholders, the performance of the Supervisory Board and the Board of NJSC Naftogaz of Ukraine in 2020 was recognized as unsatisfactory," the government statement says.

From April 28, 2021, the powers of independent members of the Naftogaz Supervisory Board, representatives of the government on the Supervisory Board, as well as Chairman of the Board Andriy Kobolyev shall be terminated.

It is noted that independent members and representatives of the state in the supervisory board of the company will continue to exercise their powers until the election and determination of new representatives.

The Cabinet at the same meeting appointed acting energy minister Yuriy Vitrenko as the new head of the board of Naftogaz, from April 29, 2021.

The new chief has been tasked with systematically increasing domestic gas production, as well as assisting in the formation of a full-fledged and fair gas market.

At the same time, Deputy Energy Minister Yuriy Boyko was appointed as an interim acting energy minister.

Addressing the report on his own dismissal via Facebook, Kobolyev said he learned about it from the news, adding he cannot comment on the issue at the moment.

He added that he had filed no resignation letter.

Background

Naftogaz reported UAH 19 billion in losses in 2020 against UAH 2.6 billion in net profit in 2019. The company attributed such performance to low demand, gas prices, and dubious debts.

At the same time, the company expects to see net profit at the end of the first quarter of 2021.

Andriy Kobolyev

• Kobolyev had worked at NJSC Naftogaz of Ukraine since 2002.
• On March 26, 2014, the Cabinet appointed Kobolyev Chairman of Naftogaz Board.
• From 2014 to February 2018, Naftogaz was in arbitration disputes with Russia's Gazprom regarding the transit of natural gas. Ultimately, Naftogaz has won the case and received $2.9 billion from Gazprom under the Stockholm Arbitration award.
• In 2018, the company produced 16.5 billion cubic meters, while the total volume of gas production in Ukraine beat the country's record with 21 bcm.
• On March 21, 2019, the Cabinet extended Kobolyev's contract for another year, obliging Naftogaz to boost own natural gas production by 10% by year-end, to 18.3 bcm.

Yuriy Vitrenko

• On December 21, the government appointed Vitrenko acting minister of energy.
• Before that, December 17, 2020, and after that, on January 21, 20201, the Verkhovna Rada voted against Vitrenko's appointment as First Deputy Prime Minister – Minister of Energy.