Ukraine's Parliament rejects GTS Operator corporate reform plan, new reform proposed

At its meeting on Saturday, the Verkhovna Rada rejected the government's draft law, which provided for the liquidation of the company Mahistalni Hazoprovody Ukrainy, the sole owner of the Operator of the GTS of Ukraine, reported the website of the parliament.

Khlapuk's draft law, as stated in the explanatory note, eliminates several risks that were contained in the government's draft:

→ transfers the authority to appoint the head of OGTSU to the general meeting of the company, if its supervisory board is not elected by October 31, 2023;
→ ensures the formation of the supervisory board of OGTSU in the order provided for enterprises that are particularly important for the economy;
→ establishes that the type of executive body of OGTSU (one-person or collegial) is determined at the level of the company's charter, and not at the level of the legislation, as the government bill proposes;
→ removes the exclusive right of the Supervisory Board of Mahistalni Hazoprovody Ukrainy to propose changes to the statute of OGTSU.

"Thus, the bill eliminates the above-mentioned shortcomings, while leaving the procedure for optimizing the ownership structure of the operator of the gas transportation system of Ukraine, proposed by the Cabinet of Ministers of Ukraine," the draft law says.

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

Corporate reform in OGTSU is one of the obligations of Ukraine within the framework of the program with the IMF.