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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.