Members of the Executive Board at NJSC Naftogaz of Ukraine have publicly addressed the Ukrainian government with an appeal to resolve the situation with the Supervisory Board after the latter's members filed for resignation amid the shocker sacking of CEO Andriy Kobolyev.

"Executive Board members call on the Government of Ukraine to resolve the situation with respect to the Supervisory Board of Naftogaz," reads the statement posted on social networks by members of the Executive Board Serhiy Pereloma, Peter Van Driel, and Iaroslav Tekliuk on Wednesday, May 5.

"For a complex and important company like Naftogaz, the presence of a well-functioning and credible Supervisory Board and proper Corporate Governance is critical," the statement stresses.

Recalling that the resignation of all Supervisory Board members becomes effective by May 14, the statement notes: "Without a resolution by that date, it becomes impossible for Executive Board members to continue their duties."

Reshuffle in Naftogaz: Background

  • On April 28, 2021, Ukraine's Cabinet of Ministers suspended the powers of members of the Supervisory Board of NJSC Naftogaz of Ukraine, apparently to allow shareholders to sack 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.
  • The decision is a legal manipulation, Naftogaz said in a statement on Wednesday, April 28.
  • Along with the dismissal of the Supervisory Board for two days to sack Kobolyev, it is "is a violation of the basic principles of corporate governance of state-owned enterprises," the company's press service said.
  • Any decisions on the CEO's appointment or dismissal are reserved to the supervisory board and cannot be delegated, the statement adds.
  • On May 1, all members of the Supervisory Board at NJSC Naftogaz of Ukraine submitted resignation letters.