European Bank for Reconstruction and Development: Ukraine's Naftogaz failed to reform

The European Bank for Reconstruction and Development or EBRD announced the failure of the reform of Naftogaz of Ukraine.

Last week, four out of five members of the Naftogaz Supervisory Board, Marcus Richards, Charles Proctor, Paul Warwick and Yulia Kovaliv announced that they may leave the company due to the government's failure to implement the company's corporate governance plan.

This was reported by Evropeyskaya Pravda online newspaper with reference to a letter from EBRD President Suma Chakrabarti addressed to Ukrainian President Petro Poroshenko and Prime Minister Volodymyr Groysman.

"The reform of Naftogaz, one of the most important reforms under your jurisdiction could fail in the coming days. After a series of disappointing events, independent members of the Supervisory Board of Naftogaz announced the possibility of them leaving," the letter says.

"If this happens, it will not only seriously damage Naftogaz but also destroy the international community's confidence in the government's obligations to reform and restructure Naftogaz," the EBRD President writes.

Chakrabarti draws attention to the unjustified delay in the implementation of the corporate reform plan of Naftogaz, and the unfinished work on the implementation of the secondary legislation necessary for the entry into force on April 1 of changes in the Naftogaz charter.

"After many months of consultations, the draft state property policy for Naftogaz continues to contain provisions that are contrary to the spirit of corporate governance reform, which jeopardizes the alleged independence and isolation of the company from unreasonable political interference," the letter says.

Last month, Naftogaz also made a statement about the possibility of going bankrupt.

  Ukraine, Naftogaz, reform