Independent director resigns from Naftogaz supervisory board

Charles Proctor, an independent member of Naftogaz supervisory board, has informed the board of his decision to resign with effect from 30 September 2017

Charles Proctor, an independent member of Naftogaz supervisory board, has informed the board of his decision to resign with effect from 30 September 2017. He is the second supervisory board member who has resigned over the last six months, following the resignation of the former chairperson Yulia Kovaliv who represented the state of Ukraine.

Explaining his decision, Mr. Proctor commented that the level of government support required to deliver corporate governance reform had not been forthcoming, despite repeated commitments from government officials. He noted that in addition to threatening the overall corporate reform effort, this had resulted in a substantial increase in the time commitment required from the supervisory board members compared to that envisaged at the time of appointment. Taken together, these factors made it impossible for him to continue to fulfil his role effectively and therefore with regret, he had decided to resign.

The remaining members of Naftogaz supervisory board share Mr. Proctor’s discouragement with the present situation and his concerns about the future of corporate governance reform. Citing, amongst other areas of concern, the lack of an agreed strategy for the company, which creates a potential regulatory void enabling political meddling in the company’s operation, and the continued lack of approval of agreed financial plans for Naftogaz group companies for 2017 with a consequent impact on the company’s ongoing business, and specifically investment in critical projects to maintain transmission infrastructure and grow domestic gas production. These are material issues that have a direct impact on the success of the Supervisory Board. Although they currently remain committed and focused to the success of Naftogaz they observe that without significant progress their situation is not sustainable.

The supervisory board members and management of Naftogaz are grateful to Mr. Proctor for his valuable contribution to the Supervisory Board and, especially, establishing the internal audit function in the group and his leadership in the audit committee.

Corporate Communications Department
NJSC Naftogaz of Ukraine

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