Naftogaz follows uniform standard to check contractors – CECO Kalinin

The relevant statement was made by Naftogaz of Ukraine NJSC Chief Ethics and Compliance Officer (CECO) Yevhen Kalinin during the conference ‘Day of Supplier of State-Owned Enterprises in Oil and Gas Industry: Plans for 2025’, an Ukrinform correspondent reports.

“Naftogaz Group follows a standard to check contractors, which was developed and approved by the Supervisory Board. We have a uniform approach, a transparent scoring system and, thus, three risk zones: green, yellow and red,” Kalinin explained.

In his words, if the contractor falls into the green zone following the inspection, no issues were found. Ending up in the yellow zone indicates that the supplier is under monitoring, while in the red zone cooperation is ruled out due to the existing compliance risks.

“We also have a developed channel to report on possible corruption or procurement violations – Naftogaz Group’s confidential hotline,” Kalinin noted.

The confidential hotline is technically maintained not directly by Naftogaz but by an independent company. As emphasized by Kalinin, such approach ensures transparency and impartiality when considering the appeals, as well as the security of communication channels.

According to Kalinin, the confidential hotline receives more than 250 reports on a monthly basis, of which about 20% are relevant.

As an example, Kalinin mentioned the investigation by the compliance service into the procurement carried out by one of Naftogaz’s subsidiaries, which prevented more than EUR 5 million worth of losses in 2023. This case was forwarded to the law enforcement agencies.

A reminder that Naftogaz Group’s capital expenditures (CAPEX) reached about UAH 62 billion in 2024 and are expected to grow next year.

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