The Ministry of Economy of Ukraine is actively working on the implementation of the corporate governance system in economic entities of the public sector of the economy according to the principles and recommendations of the Organization for Economic Cooperation and Development. On November 28, Deputy Minister of Economy Oleksii Sobolev spoke about achievements and plans in this area at an extraordinary meeting of the OECD working group on issues of state property management and privatization practices.

“In order to increase the efficiency of management of state-owned enterprises and create favourable conditions for attracting private investments, we are introducing a clear management system based on OECD principles. And we continue this work even during the war, without waiting for its end. Cooperation with the OECD is very important to us for expert support and exchange of experience. After all, effective management of state resources is now especially necessary for the country,” Oleksii Sobolev noted.

One of the necessary elements of the reform is the adoption of draft law 5593-d on improving corporate governance. After the adoption of the law, the Government will approve the State Ownership Policy, which outlines the goals and priorities according to which the state owns and manages SOEs.

The approval of a number of regulatory documents that are part of the State Ownership Policy: the Policy on Remuneration of Managers and Members of Supervisory Boards of SOEs and State Dividend Policy is among the priority goals for 2024. As well as approval of the Procedure for Evaluating the Activity of Supervisory Boards and Criteria for Engaging an Independent Evaluator.

For the development of these and other by-laws, the Ministry of Economy uses the expertise and experience of the OECD.

In 2024, the Government will also define a privatization strategy that will reduce the portfolio of state property and attract private investments. It is about approving the list of facilities prohibited for privatization and transferring all other SOEs to the State Property Fund of Ukraine for privatization or liquidation.

The corporatization of strategic enterprises through their transformation from SOEs to JSCs or LLCs is among the important plans for 2024. And the introduction of OECD corporate governance principles in them.

As regards important achievements of 2023, Oleksii Sobolev noted the optimization of the structure of Gas Transmission System Operator of Ukraine, which consists in the implementation of a proper corporate management system, and the approval of the Supervisory Board of GTSOU.

Another important step is to improve the corporate management of SE NNEGC Energoatom. This year, the reorganization of the enterprise into a joint-stock company began.

Background:

The Organization for Economic Cooperation and Development (OECD) unites 37 countries of the world. Most of the states of the European Union, the USA, Australia, Switzerland, Norway, South Korea, Japan and others are its members.