OREANDA-NEWS. The Government of Ukraine initiated the process of selection of qualified candidates to fill the posts of independent members of the Supervisory Board of the NJSC Naftogaz of Ukraine. The establishment of an independent Supervisory Board is part of the corporate governance reform at the largest state-owned company, intended to reduce the risks of political interference in the activities of the NJSC and to create up-to-date mechanisms to ensure professional management of the company, thus protecting the interests of citizens of Ukraine.

The Ministry of Economic Development and Trade of Ukraine note that the Supervisory Board will comprise 5 members, of whom three are independent and two shall be appointed by the government. Candidates for the positions of independent members of the Supervisory Board shall be selected by the Committee responsible for the appointment of chairmen to manage particularly important for the economy enterprises. The Committee is composed of 5 Ministers and 5 independent members from international financial institutions and the business environment. The Supervisory Board shall be approved by the Ministry of Economic Development and Trade.

In March 2015, the Government of Ukraine approved a plan for a comprehensive gas sector reform, which was designed to introduce competition, transparency, market prices for natural gas, to ensure diversifying of gas imports and reforming the Naftogaz of Ukraine corporate management.

In December 2015, the Government of Ukraine endorsed the new statute of the NJSC Naftogaz of Ukraine, a regulation on the Supervisory Council and a regulation on the Management Board of the company. Until April 2017 the authority of the Supervisory Board will be restricted, in particular, the general assembly of shareholders shall be responsible for appointment the Board and approval the financial and investment plans of the company. Starting April 2017, the aforesaid powers will be devolved to the Supervisory Board.