Yuriy Vitrenko, after 1.5 years as Naftogaz CEO resigns

Yuriy Vitrenko thanked Naftogaz employees for the results achieved during his tenure as company CEO.

"Since middle of 2021, up to the beginning of the full-scale war, you reversed the negative trends and began to ramp up brownfield production. Now, we are demonstrating far better results compared to private companies, although earlier it was the other way around. Together, even under tough conditions, we made the company profitable again in 2021, after loss-making the year before. Even despite the war, the company turned profitable in Q2 2022, following losses caused by russia’s full-scale invasion in Q1. At the same time, you secured the supply of gas and social stability across the country. We deprived Firtash the opportunity to earn excessive profits on the resale of gas produced by the company. Together, we made a major contribution to halting Nord Stream 2, even after it had already been completed. You brought the company back on the market reforms track", Yuriy Vitrenko said summing up the company’s performance in his address to Naftogaz employees. 

He also stressed that the company has a concept for transforming the sector, well-thought-out levers for change, successful pilot projects. Work is already underway to significantly boost production by using new technologies. Human capital development projects are being implemented. Corruption opportunities have been minimised. A new arbitration tribunal against Gazprom on transit is being launched, the Crimean assets arbitration against russia is ongoing, and a complaint against Gazprom has been filed with the EU antimonopoly body. The company’s 2022 financial plan envisages profit. The necessary laws have been adopted; regulatory documents have been drafted. It was also resolved to transfer Firtash’s regional gas retailer companies under the control of Naftogaz. At the same time, Yuriy Vitrenko expressed his expectation that with the appointment of a new CEO the state will speed up the necessary decisions to finally hand over the real control, and that this process will be irreversible.

"I expect my resignation will speed up the appointment of the Supervisory Board. This is crucial for the company and for the country, as the Supervisory Board could drive corporate transformation and even transformation of the entire industry. Apart from the team, the company has a positive reputation among international partners, and this is now important for the victory and restoration of Ukraine," Yuriy Vitrenko added.

We remind that Yuriy Vitrenko was appointed Naftogaz CEO in April 2021. And already in 2021, the company reversed the trend of dwindling production, and mid-year started steady growth in the average daily gas production. Resources and technologies that enable actual production enhancement in the coming years have been identified. In 2021, Naftogaz paid UAH 116 billion to the state budget, which exceeds the 2020 payments. The company also managed to secure the stable passage of the heating season despite all apprehensions. At the same time, gas prices for households weren't increased, which helped the government to ensure social stability in the country. We also succeeded in taking away the intermediaries’ chance to earn large profits with no risk by simply reselling the state company’s gas.

Amid the full-scale war, Naftogaz demonstrated efficient performance. In particular, the company maintains gas production rates despite the military risks. There is enough gas in the UGS facilities for stable passage of the heating season. The infrastructure is also prepared for winter. Gas supply to all consumers has been secured. Oil and petroleum product pipeline operations are benefitting the country. During the first months of the war, the national company provided for almost 1/3 of tax revenues to the state budget, which has greatly supported the country, especially given the war. The company’s and Yuriy Vitrenko’s personal participation in promoting energy sanctions against russia, some of which are already imposed, are of the same importance. It is also important that even during the war, Naftogaz continued to invest in bioenergy projects in different cities of Ukraine – CHPs running on biomass in Zhytomyr, Okhtyrka, Lviv, biogas-fuelled power plant in Lviv oblast.

In addition to these achievements, the performance of Naftogaz under the management of Yuriy Vitrenko is described in detail in the company’s 2021 Annual Report and in the report for H1 2022, which was published today.

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