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    Ukraine announces plan to select independent members of Naftogaz supervisory board

Summary

Ukraine's economy ministry said on Thursday an open selection process would be held to choose four independent members of the supervisory board of state energy company Naftogaz.

by: Reuters

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Ukraine announces plan to select independent members of Naftogaz supervisory board

KYIV, Dec 8 (Reuters) - Ukraine's economy ministry said on Thursday an open selection process would be held to choose four independent members of the supervisory board of state energy company Naftogaz.

Naftogaz's supervisory board has not been operating since September 2021 because of a dispute over the abrupt sacking of the company's then-chief executive, Andriy Kobolyev, and the rapid appointment of his successor, Yuriy Vitrenko.

The process of appointing new board members was delayed by Russia invading Ukraine in February. Since then, Vitrenko has been replaced by a new chief executive, Oleksiy Chernyshov, who has said he will boost international investors' confidence.

Vitrenko had said the efficient work of Naftogaz depended on the effectiveness of corporate governance, and called for independent board members to be selected in an open competition.

Interfax Ukraine news agency quoted Chernyshov as saying the new supervisory board would be formed by the end of January, and that this would improve the transparency of the board's work.

Chernyshov said on Wednesday that recent Russian attacks on Ukraine had damaged 350 natural gas facilities though production should be largely restored by year-end. He said the loss of gas production capacity amounted to a value of around $700 million.

Naftogaz had already reported a bigger loss in the first half of this year because of the impact of Russia's war in Ukraine, and tipped into default in July.

The company said in mid-November it was intensifying cooperation with its creditors to resolve the situation after bondholders of two of its main bonds did not back a payment deferral plan. (Reporting by Pavel Polityuk, editing by Timothy Heritage and Crispian Balmer)