EBRD backs resigned Naftogaz's supervisory board, calls for continuing company reform

The European Bank for Reconstruction and Development (EBRD) urges the continued transformation of national joint-stock company (NJSC) Naftogaz Ukrainy and believes that Ukraine cannot afford to delay reforms any further.

"The second stage of Naftogaz transformation is long overdue. Good governance has enabled the company to return to profitability and eliminate significant opportunities for corruption. Now is the time to consolidate and move along the reform path," the bank said in a statement.

The EBRD regrets that it came to a situation, where the independent board members of NJSC Naftogaz Ukrainy felt they had no choice but to resign.

"We would like to thank them for the dedication, professionalism and competence with which they engaged in the process of Naftogaz transformation. What they have accomplished is extraordinary," the bank said.

As reported, the Ukrainian government launched corporate governance reform at Naftogaz Ukrainy in 2015 in line with the principles of the Organisation for Economic Co-operation and Development (OECD). In May 2016, the supervisory board consisting of British citizens Marcus Richards, Charles Proctor and Paul Warwick was created. First Deputy Economic Development and Trade Minister Yulia Kovaliv was a member appointed by the government and former energy and coal industry minister Volodymyr Demchyshyn was appointed by the Presidential Administration.

Kovaliv resigned on April 17, 2017.

Proctor also decided to resign in the middle of August 2017. His powers will be terminated from September 30.

Richards and Warwick decided to resign on September 19.