The Cabinet of Ministers of Ukraine has taken the state-owned energy holding Naftogaz Ukraine from under the Economy Ministry`s jurisdiction, planning to continue to exercise control of the company collectively, that`s according to a decision passed at a Thursday meeting of the Ukrainian Government upon a proposal of Prime Minister Volodymyr Groysman.
”The company will be managed directly by the Cabinet of Ministers,” said Groysman.
According to him, this decision will boost the company`s transparency and efficiency.
Earlier, the Cabinet established a working group on the reform of Naftogaz of Ukraine and the state-owned operator of the Ukrainian gas transportation system Ukrtransgaz.
The group included experts of the World Bank, the European Bank for Reconstruction and Development, as well as personally, U.S. Ambassador to Ukraine Marie Yovanovitch. The group was established, according to an order by Volodymyr Groysman and will be headed by Deputy Prime Minister Volodymyr Kistion.
UNIAN memo. Naftogaz Ukraine is the country`s largest stat-owned vertically integrated oil and gas company, which produces about 90% of oil and gas in Ukraine. The company develops gas and oil fields, deals with oil and gas production, transportation and sales of oil products through its own network of filling stations.
In 2015, the government initiated a reform of Naftogaz to meet the requirements of the EU`s Third Energy Package, involving differentiation of functions of production, transportation and supply of fuel to final consumers.
At the same time, in 201, the Cabinet of Ministers has initiated the transfer of Naftogaz`s management from the Energy Ministry to the Economy Ministry. The formation of the Supervisory Board was completed this spring.