Enterprises Weekly News Today

The long-awaited law on the corporate governance of SOEs comes into effect. “This is a critical step to ensure that state-owned enterprises operate in line with OECD principles, reducing opportunities for corruption and ensuring accountability of CEOs by supervisory boards selected according to international standards,” G7 ambassadors responded.

The Verkhovna Rada adopts the long-awaited law on the corporate governance of SOEs. Establishing the exclusive power of the SOE’s supervisory board to appoint and dismiss the CEO, even in SOEs owned or overseen by the Cabinet of Ministers (such as Naftogaz and Ukrzaliznytsia), and to approve the SOE’s strategic and financial plans.

Cabinet re-appoints Mishyn to Ukrzaliznytsia’s management. On Feb. 13, the Cabinet of Ministers re-appointed Anton Mishyn as a member of Ukrzaliznytsia’s executive board until March 31, 2025. As we wrote in Issue 84, on April 18, 2023, the Cabinet had appointed Mishyn as a new member of the company’s executive board for six months.

On Feb. 5, the Cabinet of Ministers set the basic dividend pay-out ratio for SOEs at 80%, but SOEs can choose to pay higher dividends. According to Oleksii Sobolev, Deputy Economy Minister, the 2024 state budget expects total dividends from SOEs to be more than Hr 66 billion ($1.7 billion). As we wrote in Issue 115, Naftogaz Group paid over Hr 90 billion ($2.4 billion) in taxes in 2023.

Editor’s Note: This is issue 116 of Ukrainian State-Owned Enterprises Weekly, covering events from Jan. 20-26, 2024. Ukreximbank’s new supervisory board elects its chair. On Jan. 22, Rostyslav Futalo was chosen as the board chair and Dominique Menu as the deputy chair.

Cabinet completes the composition of Naftogaz’s supervisory board. This completes the board, Naftogaz said. Marievich had already served as a state representative on Naftogaz’s supervisory board from June 26-Sept. 11, 2019 when his powers were terminated early.

Oschadbank and Ukreximbank had no supervisory boards for almost seven months. As we reported in December 2023 (see Issue 113), even though the Cabinet of Ministers appointed the new independent members of Ukreximbank’s supervisory board on May 30, the same ordinance appears to have blocked the board’s work. Under the ordinance, independent members serve for three years from the date on which all independent members officially assume their roles.

Verkhovna Rada appoints a new chief for SPFU. According to Chesno, Vitaliy Koval had been a governor since 2019. In the first round of the mayoral elections, Koval received 13.52% of the vote, taking the third place.

Cabinet approves Ukraine’s action plan to implement OECD’s program for Ukraine. The action plan matches the projects stated in the four-year Country Program launched by OECD and the Government of Ukraine on June 7. Policies to improve the financial market and corporate governance in 2024-2025 will be reviewed.

SPFU presents a concept of the Ukrainian Sovereign Wealth Fund, expecting to launch it in 2024. On Nov. 8, Oleksandr Fedoryshyn, acting head of the State Property Fund of Ukraine (SPFU), presented what the Ukrainian Sovereign Wealth Fund will look like to the Verkhovna Rada’s Economic Development Committee. According to Fedoryshyn, the sovereign fund would gradually come to include all strategic SOEs that are not subject to privatization.