OECD acknowledges Ukraine’s progress in reform of corporate governance of state-owned enterprises

"The Organisation for Economic Co-operation and Development (OECD) acknowledged the progress in reforming corporate governance in the sector of state-owned enterprises in Ukraine and provided a number of recommendations to the state, both as the owner and shareholder of companies, and directly to one of the strategic state-owned enterprises, the Naftogaz of Ukraine,” the Government portal reports.

The OECD outlined its vision for the development of the situation, including in the hydrocarbon extraction and supply sector in a special report, which highlights the main achievements of the public sector reform. These achievements include the approval of new legislation on privatization, the approval of the basic principles of the implementation of property policy with regard to public sector entities, as well as the elaboration and implementation of certain policies for 15 state-owned enterprises of special importance for the domestic economy.

"Ukraine confirms its commitment to the OECD principles and will continue to adhere to the best practices of the member countries of this organization on the path of reforming the state-owned enterprises," said Minister of the Cabinet of Ministers of Ukraine Oleksandr Sayenko, speaking at the presentation of the OECD report.

The OECD recommendations to the state as the owner and shareholder, including of the NJSC "Naftogaz of Ukraine" are the following: updating legal framework of activity of the state-owned enterprises; creating a professional body with the function of coordination of the state-owned enterprises; approving the corporate strategy of NJSC “Naftogaz of Ukraine” ensuring a balance between state and corporate goals; eliminating a conflict of interest in the performance of various functions by organizations operating in the hydrocarbon sector, etc.