Ukraine fulfils another IMF benchmark on gas transmission system operator reform

Ukrainian president Volodymyr Zelenskyy has signed a law on optimising the structure of the Ukrainian gas transmission system operator, or GTSOU, thus fulfilling another International Monetary Fund ‘benchmark’ for providing a four-year USD 15.6 billion loan.

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The law provides for the corporate governance reform at GTSOU, which includes the transfer to the Ukrainian government of the operator’s share, as well as appointment of an independent supervisory board.

The board will be responsible for appointing GTSOU’s head and / or members of the executive body.

The law also establishes safeguards to ensure that Ukraine fulfils its commitments to reform the corporate governance of the Ukrainian gas transmission system operator.

When signing the memorandum with the IMF, Ukraine committed to launch a corporate restructuring of the Ukrainian Gas Transmission System Operator by the end of Q2 2023.

By the end of July 2023, GTSOU’s corporate rights were to have been transferred to the state and a new charter drawn up and agreed with the Energy Community Secretariat were to have been adopted.

Also, by the end of October this year, it is necessary to select and appoint the Supervisory Board of the GTSOU.

In late March, the IMF Executive Board approved a four-year loan to Ukraine of USD 15.6 billion in the form of Extended Fund Facility (EFF). The Fund's mission in Ukraine started working in late May.