The Ministry of Finance’s Commission for the reorganisation (transformation) of SE NPC Ukrenergo into a joint stock company prepared and sent to the State Property Fund a certificate of valuation of the company’s property. This allowed Ukrenergo to enter the final stage of corporatisation – a transformation into a joint-stock company with 100% of the stock owned by the state.
Thanks to the support of the Ministry of Finance and Minister Oksana Markarova personally, we were able to not only to unlock the reform but to successfully enter its final stage as well. This event is important for the entire energy sector as a whole since Ukrenergo’s corporatisation is part of Ukraine’s international commitments, implementation of which is one of the key prerequisites for Ukraine receiving macro-financial assistance from the EU, Ukrenergo CEO Vsevolod Kovalchuk said.
Ukrenergo’s corporatisation began in November 2017 by the Ministry of Energy and Coal Industry, to which the company was then subordinated. Yet, in December 2018, the Ministry of Energy and Coal canceled the effect of its orders of 05.02.2017, No. 728 “On Establishing the commission for the reorganisation (transformation) of the SE NPC Ukrenergo” and of 29.12.2017 “On Approval of the Plan of Reorganisation (Transformation) Measures for the SE NPC Ukrenergo”. This step blocked and substantially delayed the corporatisation of the state enterprise. The date of compiling the certificate of valuation of property, which is mandatory for taking further steps to reorganise the company, has been repeatedly postponed.
After Ukrenergo was transferred from the Ministry of Energy and Coal under the supervision of the Ministry of Finance in February 2019, corporatisation process resumed. The Ministry of Finance issued Order No. 73 “On the Transformation of the State Enterprise NPC Ukrenergo”, and set up the Commission for the reorganisation (transformation) of the SE NPC Ukrenergo.
Next steps in corporatisation will be the approval of the company’s articles of association, termination of the state-owned enterprise, and registration of the joint-stock company, issue of the company’s shares. This process may be completed in August 2019.
Without corporatisation, Ukrenergo will not be able to obtain the certification of the independent transmission system operator confirmed by the Energy Community Secretariat. This circumstance is also a prerequisite for the proper functioning of the electricity market and the future synchronisation of Ukraine’s grid with ENTSO-E.