Management of Naftogaz Ukrainy moved to government
Management of national joint-stock company Naftogaz Ukrainy has been moved from the Economic Development and Trade Ministry to Ukraine's Cabinet of Ministers.
The decision was made by the government at a Thursday meeting.
Earlier Prime Minister Volodymyr Groysman said that the conflict around subordination of Naftogaz Ukrainy to the Economic Development and Trade Ministry focused the necessity of reforming Naftogaz Ukrainy by unbundling the company and making management of the holding's companies more transparent.
"Management by the Cabinet of Ministers would only accelerate the process," Groysman said.
As reported, there arose a conflict with Ukrtransgaz in mid-September. The ministry, without notifying the Naftogaz management, by an order dated September 7, renewed the charter of the company, undertaking the functions of the management of Ukrtransgaz in terms of changing the board and the supervisory council, as well as approving its financial plan and investment program, whereas previously this function was performed by Naftogaz.
Naftogaz said that the amendment of the charter put under a threat the signing of a $500 million loan agreement with the involvement of the World Bank. It also violated the conditions of the loan agreement with the European Bank for Reconstruction and Development (EBRD).
Later the Economic Development and Trade Ministry annulled its decision and at a meeting on Monday headed by Groysman it was decided to create a working group to draft concrete steps for Naftogaz's unbundling and the further transfer of management from the Economic Development and Trade Ministry to Ukraine's Cabinet of Ministers.
