At IMF's behest, Ukraine gov't installs oversight at gas pipeline operator on deadline
Photo: press service of the Cabinet of Ministers

At a meeting on Tuesday, the Cabinet of Ministers approved the nomination committee's proposals for appointment to the supervisory board of the GTS Operator company, reported the government's Telegram channel.

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It will consist of four people, three of whom are independent members: David Charles Davis, Serhiy Konovets, Jan Chadam. Svitlana Hrynchuk, deputy minister of energy, will represent the state in the supervisory board.

From the previous composition of the Supervisory Board of Main Gas Pipelines of Ukraine (the former owner of OGTSU), only Chadam, who was its chairman, remained.

As of October 27, the state registration of Main Gas Pipelines as a legal entity was terminated as a result of the reorganization. According to the law adopted in July, the company will be joined to GTS Operator of Ukraine.

In the list of founders of GTS Operator, instead of Main Gas Pipelines of Ukraine, "the state in the person of the governing body" appeared. According to the Cabinet of Ministers' order No. 828 of September 22, the power to manage the state's corporate rights in the GTS Operator belongs to the Ministry of Energy.

Corporate reform in the GTS Operator is one of the "beacons" of the International Monetary Fund. By the end of July 2023, Ukraine undertook to transfer the corporate rights of the GTS Operator to the Ministry of Energy and to adopt a new charter of GTSOU, developed and agreed with the Secretariat of the Energy Community. The GTSOU supervisory board had to be elected and appointed by the end of October.

In July 2023, the Verkhovna Rada voted to liquidate the Main Gas Pipelines of Ukraine company as part of optimizing the ownership structure of the GTS Operator.

Last year, the Energy Community warned that Ukraine should reform the corporate governance of the GTS Operator of Ukraine to avoid re-certification.