“State ownership policy is one of the key documents required by OECD Guidelines on Corporate Governance of State-Owned Enterprises in order to develop a proper corporate governance system at SOEs. In this policy, the state as a shareholder identifies the purpose of state ownership, which, along with strategic goals and areas of activity established by the shareholder, underpins the development of Naftogaz Group’s strategy and key performance indicators for the supervisory and executive boards. We welcome the approval of the ownership policy for Naftogaz Group,” Naftogaz Corporate Secretary Maia Sukhan said.
The Naftogaz ownership policy defines the purpose, priorities, major activity areas, and performance indicators of the Company while specifying how the state implements its ownership.
The Government identifies that the state owns Nafotgaz to ensure the following:
- secure gas supply to Ukrainian consumers;
- Ukraine’s energy independence, including independence from gas imports;
- successful transformation of the energy sector and the completion of gas market reform in Ukraine;
- effective representation and protection of Ukraine’s interests in both domestic and international energy markets, including relations with the national oil and gas companies of other countries;
- oil and gas production; and
- transportation of oil and petroleum products.
To this purpose, the Government identified strategic goals and areas of activity for the Company, and expects the Company to create the necessary conditions for their long-term implementation using its size, advantages of vertical integration, knowledge, and experience to generate profit in a sustainable way.
The state, in turn, undertakes to implement a corporate governance system compliant with OECD Guidelines at Naftogaz.
According to these guidelines, the state should act as an informed and active owner. To do that, proper governance principles need to be applied to Naftogaz and to Group enterprises; the Company’s supervisory board with a majority of independent members should be duly empowered and allowed to perform its duties, while its independence should be respected when it comes to control over the executive board’s activities and responsibility for achieving the goals set in the ownership policy; the Company’s executive board should be enabled to perform its duties and duly empowered to achieve set goals; and dividend policy should be transparent.
Adjusted return on assets (ROA) calculated based on consolidated financial statements (not lower than indicated in the Company’s strategy) and net transfers to the state budget will be used to evaluate Naftogaz’s performance and assess generated value.
According to the relevant decision of the Government, the Naftogaz supervisory board has three months to submit Naftogaz’s strategy for approval by the Government.
Integrated Communications Department
NJSC Naftogaz of Ukraine