Ukraine Seeks Supervisory Board Members for Naftogaz

Ukraine’s ministry for economic development and trade has begun the process of selecting candidates for appointment as independent members of the supervisory committee of Naftogaz Ukrainy, the company said January 20.

It has engaged the services of international head-hunter Odgers Berndtson, it said. The European Bank of Reconstruction and Development will pay any fees.

The supervisory board will have five members, three of which must be independent and two will be appointed by the government.

In the ‘corporate governance’ section of the company’s website, it says that last year the government decided to pursue OECD principles of corporate governance for state-owned enterprises. These principles regulate relations with shareholders and stakeholders; transparency and information disclosure; and the segregation of duties of management bodies at all levels.

The supervisory board will be “effectively insulated from political meddling and graft,” and receive an “unprecedentedly wide range of authority and responsibility,” including better control over the company’s executive board, the company said.

Commenting on the plan, CEO Andriy Kobolev said: "The management team of Naftogaz welcomes the launch of the candidates selection procedure and encourages qualified professionals to apply. The establishment of an independent supervisory board in line with the OECD standards is a prerequisite to transforming Naftogaz into a transparent, commercial company, whose goal shall be maximizing value for its ultimate owner: the people of Ukraine."