UARU
EBRD Appeals To The Ukrainian Government To Restore Naftogaz Charter – Director For Eastern Europe
20 September, 2016
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What You Need To Know:

✅ “Naftogaz used to be one of the darkest corners of state-owned enterprises in Ukraine;”
✅ The news of the Ukrainian government altering Naftogaz's charter to retain control of the company's gas transport arm this week is said to be a move in the wrong direction;
✅ Last October, an agreement was signed with Naftogaz to transform its governance.
✅ “We need to revert to a situation where there’s proper internal controls and where we go back into corporate the governance improvement plan that we had agreed upon with management of Naftogaz and the Government of Ukraine.”

“Naftogaz used to be one of the darkest corners of state-owned enterprises in Ukraine,”  says Francis Malige, Managing Director for Eastern Europe and the Caucasus for the EBDR. “Thanks to the work we’ve done – not just EBDR but all the international development partners of Ukraine with the Government, we’ve managed to significantly change the company.”

The news of the Ukrainian government altering Naftogaz's charter to retain control of the company's gas transport arm this week is said to be a move in the wrong direction.

Last October, an agreement was signed with Naftogaz to transform its governance. Proper risk management and anti-corruption mechanisms were introduced among other things, and Naftogaz received $300 Million in funding to purchase gas for the winter.  The enterprise has since returned to profitability.

“Changes have to be done according to good governing principles,” says Malige, who spoke with Ukraine’s Prime Minster, who according to Malige, agreed there was an issue.  “We need to revert to a situation where there’s proper internal controls and where we go back into corporate the governance improvement plan that we had agreed upon with management of Naftogaz and the Government of Ukraine.”

Hromadske’s Nataliya Gumenyuk spoke to Francis Malige, Managing Director for Eastern Europe and the Caucasus for the EBDR in September 2016 in Kyiv.