The Cabinet of Ministers of Ukraine on Oct. 16 unanimously approved the action plan on reforming the corporate management of national joint-stock company Naftogaz Ukrainy which includes the creation of a supervisory board and the involvement of independent directors, Naftogaz Board Chairman Andriy Kobolev has said.
“This would allow for receiving $300 million from the European Bank for Reconstruction and Development (EBRD) and $500 million from the World Bank to buy gas,” he said at a briefing after the meeting.
He added that the action plan will introduce a new level of quality management by the state in Naftogaz Ukrainy.
“The important and key element of the decision is the creation of the full-function board of directors both from independent directors and representatives of the government,” Kobolev said.
He said that Ukrainian Prime Minister Arseniy Yatsenyuk proposed that representatives of international credit organizations delegate their representatives to the board of directors.
Energy and Coal Industry Minister of Ukraine Volodymyr Demchyshyn criticized the plan while he was in Tirana (Albania) at the Ministerial Council Meeting of the Energy Community.
EBRD Managing Director for Eastern Europe and the Caucasus Francis Malige said that the agreement on the three-year renewable (revolving) credit with a limit of $300 million will be signed with Naftogaz Ukrainy next week.
Kobolev said that Naftogaz initially planned to receive the funds by the end of October, although due to delays with the adoption of the corporate management reform plan the company will receive it in early November.
He said that the signing of the credit agreement worth $300 million between Naftogaz Ukrainy and EBRD and the government guarantees between the bank and the Ukrainian government is scheduled for Oct. 23 in Berlin.
Kobolev said that the Economic Development and Trade Ministry is responsible for the introduction of the plan.
Kobolev said that the corporate management reform plan for the gas transport system will be approved after the final selection of the model to divide Naftogaz Ukrainy.
“After the discussion with the EBRD team it was decided that this plan concerns Naftogaz’s divisions, and it would be agreed after the final decision making on the concrete unbundling model,” he said.
He said that the today’s decision will unblock funds under a credit earlier signed with the EBRD for the modernization of the Urengoy-Pomary-Uzhgorod gas pipeline in the amount of 150 million euros.
