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All members of the Supervisory Board at state-owned NJSC Naftogaz of Ukraine are submitting resignation letters.

The harsh move comes following the sacking of company CEO Andriy Kobolyev by government in what the company believes was a major breach of corporate governance rules.

Supervisory Board members on Friday met the Executive Board members and a newly appointed CEO, Yuriy Vitrenko, who previously was among the company's top managers before joining the government as acting energy minister.

"According to the procedures currently in effect, these resignations will be effective on 14 May 2021," the Supervisory Board's statement says. "The Supervisory Board had to hold the extraordinary meeting once its authorities have been renewed to ensure the continued well running of the Company."

Executive Board members raised their concerns about the ability to continue further serving the company, the statement adds.

The Supervisory Board has vowed to do "as much as it can to deliver an orderly transition."

Read alsoU.S. State Department comments on reshuffle in NaftogazBackground

  • On April 28, 2021, Ukraine's Cabinet of Ministers terminated the powers of members of the Supervisory Board of NJSC Naftogaz of Ukraine, as well as Chairman of the Board Andriy Kobolyev, while appointing Yuriy Vitrenko to that position.
  • The move followed consideration of the company's annual report for 2020. Last year, Naftogaz saw UAH 19 billion (US$683.7 million) in net losses, with the profit target set at UAH 11.5 billion (US$413.8 million).
  • 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.
  • In turn, Naftogaz said the decision was a legal manipulation and a violation of the basic principles of corporate governance.
  • On April 29, 2021, U.S. State Department Spokesperson Ned Price commented on the recent reshuffles at Naftogaz.
  • Andriy Kobolyev says he will challenge his dismissal.