Ukraine Gov`t assumes full control of Naftogaz

The Cabinet of Ministers of Ukraine has received 100% of shares of national oil and gas holding company Naftogaz of Ukraine from the Ministry of Economic Development and Trade, according to a posting dated October 5 in the information disclosure system of the National Securities and Stock Market Commission.

”The stake … held by the Economic Development Ministry and consisting of 160,450,481 ordinary registered shares (100% of the company`s statutory capital) was reduced to 0 shares … The stake of the Cabinet of Ministers, which included 0 shares, was increased to 160,450,481 shares, accounting for 100% of the company`s statutory capital,” the statement reads.

As reported earlier, the Ukrainian government set up an ad hoc group to reform Naftogaz and its subsidiary Ukrtransgaz, the state-owned operator of the Ukrainian gas transportation system. The group, which is chaired by Deputy Prime Minister Volodymyr Kistion, includes experts from the World Bank, the European Bank for Reconstruction and Development, as well as U.S. Extraordinary and Plenipotentiary Ambassador to Ukraine, Marie L. Yovanovitch.

On September 22, 2016 the Cabinet of Ministers of Ukraine took the state-owned energy holding Naftogaz of Ukraine from under the Economy Ministry`s jurisdiction, planning to continue to exercise control of the company collectively.

UNIAN memo. NJSC Naftogaz of Ukraine is Ukraine`s largest vertically integrated state-owned oil and gas producer whose companies account for about 90% of domestic production of oil and gas. Naftogaz is engaged in mining, oil and gas extraction, transportation and sale of fuel through its own network of filling stations.

Acting in compliance with the requirements of the European Union`s Third Energy Package, in early December 2015 the government of Ukraine initiated a reform of Naftogaz providing for the separation of the company`s activity, namely extraction, transportation and gas supplies to end consumers.

Further, in the framework of reforming the company`s governing structure the government initiated the transfer of 100% of the company`s shares that are owned by the state under management of the Ukrainian Ministry of Economic Development and Trade.

In spring 2016, the establishment of the Supervisory Board in Naftogaz was completed.

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