In the “Naftogaz” explained the company faces dismissal of independent members of the Supervisory Board
Of the Supervisory Board of the NJSC “Naftogaz of Ukraine” can quit two independent members – British Paul Warwick and Marcus Richards. They are convinced that the industry is paralyzed, because the Cabinet does not want to continue the reforms. However, the head of “Naftogaz” Andrey Kobelev said that the dismissal of the British could the financial hit the company.
The threat of the British to retire is directly connected with the plans of Prime Minister Vladimir Groisman to increase the number of members of the Supervisory Board of “Naftogaz” representatives from its orbit of influence, and thereby “blur” the majority, which is concentrated around KOBOLEV. About it writes “Economic truth”. His goal the head of the government had planned to achieve 20 September, when they had to decide the name of the new member of the Supervisory Board, but the British announced the resignation could trigger a transfer of this plan.
KOBOLEV said that the resignation of the independent members of the Supervisory Board creates risks for further holding cheap credit from international banks, to save the transit of gas through territory of Ukraine after the end of the existing contract with Gazprom, but also jeopardizes the implementation of plans to increase gas production up to 2020. This writes UNIAN.
“The main risk is the failure of the company, and possibly the government, to raise money in international banks. Second, this situation causes a significant negative impact on plans to “Naftogaz” to the branch of the transmission system operator in order to keep the transit through the territory of Ukraine. The third important aspect is the impact on gas production. It can supply the program “20/20″ at risk”, – said the head of the company.
Deputy Chairman of the management Board, financial Director of “Naftogaz of Ukraine” Sergey Conover said that the Cabinet assumed the obligation to carry out corporate reform and adhere to the corporate governance standards at a time when the EBRD and the world Bank signed with the state holding and the government guarantee and the credit agreement under which the us gained access to cheap credit resources to import gas from the EU.
“Due to stop our cooperation with the EBRD is cutting our access to cheap credit resources in the amount of $ 300 million (a credit line from the EBRD) and $ 500 million is the world Bank… If these banks will stop cooperation with us, I’m not sure that “Naftogaz” will be able to attract financial resources to the extent that we provide these financial institutions” – said Kobolyev, adding that the cost of these loans was about 1%.
If the Supervisory Board with the necessary powers will not work, that is a huge risk of political interference in the work of “Naftogaz”.
“Without the Supervisory Council, the only body that can take decisions such as the approval of certain operations, for example, the amount of more than 0.5 billion UAH – it now goes to the Cabinet of Ministers”, – said Kobolyev, and added that the government will be difficult to understand all the intricacies of the subsidiaries of the “Naftogaz” and their transactions.
KOBOLEV also convinced that the government should expand the powers of the Supervisory Board of “Naftogaz” for the efficient operation of its new composition. The Cabinet should transfer to the Supervisory Board relating to the approval of major documents and appointment of top managers of the holding to the new composition of the Board to effectively perform its functions.
Meanwhile, Groisman hinted “Naftogaz” for abuse of monopoly. He believes that the company should be demonopolized, and must refrain from attempts to influence prices.
“Monopolies are always trying to use his position to unduly raise prices, increase the cost. I will not allow any monopoly unreasonably, at least as something approaching the price adjustment of gas in our country”, – said the Prime Minister.
Groisman urged to continue the reform of “Naftogaz” and spend unbundling NAC, separating transportation and storage, production and sale of gas to monopolize “a monopoly, which today can dictate any rules on the oil market. I guarantee that the oil and gas sector to accelerate reforms so that “Naftogaz” was a modern high-quality company, which have established the good corporate governance principles, and not the only monopoly in the country.”
The head of government promises to upgrade the Supervisory Board of “Naftogaz”.
“We update any of Supervisory Board, will do it together with our international partners in public, to attract to the Supervisory Board the highest quality personnel to continue this very important and systemic reforms”, – said Groisman.
Recall, 19 September, the independent members of the Supervisory Board of the NJSC “Naftogaz of Ukraine” by Paul Warwick and Marcus Richards has decided to retire. Charles Proctor at the beginning of September announced that he will leave the company on 30 September. 3 APR Yulia Kovaliv wrote a statement of termination of their powers as members of the Supervisory Board of the company on their own.
In General, the Supervisory Board of “Naftogaz” consisted of five members: former Minister of energy and coal industry Volodymyr demchyshyn, Yulia Kovaliv and foreigners Paul Warwick, Charles Proctor and Marcus Richards.