Ukraine fulfills commitment to IMF for gas transmission operator reform
Ukraine fulfills commitment to IMF for gas transmission operator reform (Getty Images)
President of Ukraine Volodymyr Zelenskyy has signed a law (bill No. 9311-1) on the optimization of the structure of the gas transmission system operator of Ukraine. These measures are stipulated by the Memorandum with the International Monetary Fund (IMF).
What the law entails
The document envisions the implementation of an improved model of corporate control for the gas transmission system operator:
- The transfer of a share of LLC "Operator GTS Ukraine" directly to the state (represented by the Ministry of Energy of Ukraine) through the inclusion of JSC "Main Gas Pipelines of Ukraine" into LLC "Operator GTS Ukraine."
- The appointment of the first independent supervisory board in LLC "Operator GTS Ukraine," responsible for appointing the leader and/or members of the executive body of LLC "Operator GTS Ukraine."
Additionally, the law establishes safeguards to ensure Ukraine fulfills its commitments on the reform of corporate governance of the gas transmission system operator in Ukraine.
IMF Memorandum
In the Memorandum dated March 24, 2023, the Ukrainian government undertook the following commitments:
- Launch corporate restructuring of LLC "Operator GTS Ukraine" in line with the agreed-upon target model by the end of the second quarter of 2023.
- Transfer corporate rights of LLC "Operator GTS Ukraine" from JSC "Main Gas Pipelines of Ukraine" to the Ministry of Energy of Ukraine and adopt a new statute for LLC "Operator GTS Ukraine," the draft of which has been developed and approved in collaboration with the Energy Community Secretariat by the end of July 2023.
- Conduct selection and appoint the supervisory board of LLC "Operator GTS Ukraine" by the end of October 2023.
The Cabinet of Ministers made amendments to the resolution concerning the management of state-owned assets. Henceforth, the moratorium on holding competitions during a state of war does not apply to the supervisory board of LLC "Operator GTS Ukraine."
