Yesterday, Ukrenergo top management held a meeting with the delegation of the Organisation for Economic Cooperation and Development (OECD) consisting of the OECD experts and analysts and headed by the OECD Country Manager for Ukraine, Gabriela Miranda. The purpose of the meeting was to discuss the action plan and start preparations for the analysis and assessment of the state of the electricity sector and the corporate governance system on the example of Ukrenergo. The final report will include an overview of the SOE reform of the electricity sector in general and Ukrenergo case study. In particular, the structure of the company’s governance, the level of disclosure of financial and non-financial information, relations with the state, prerequisites, the state of Ukrenergo’s corporate governance reform, as well as key issues and challenges, will be analysed. The OECD Guidelines for Corporate Governance, the world standard for SOE reform, will be used as benchmark.
Ukrenergo applied with the initiative to conduct such an analysis to the Ministry of Finance as the company’s authorised body. In case of a positive decision, Ukrenergo will become the first state-owned company in the electricity sector to be involved in such a study. The work is made possible thanks to the financial support of the Government of Norway.
This analysis will highlight the strengths and identify the weaknesses of the company’s corporate governance, define key barriers and risks, as well as predict trends for the further development of not only Ukrenergo but also the electricity sector as a whole. Based on the results of the analysis, conclusions and recommendations will be provided both to the state authorities as the owner and to Ukrenergo directly.
In addition, during the meeting, the parties discussed significant steps Ukrenergo had already made towards the implementation of the corporate governance reform. The establishment of the Supervisory Board and the full-fledged compliance office, as well as the development of a number of policies and standards based on the OECD corporate governance principles, was among the significant positive shifts in this area
“We expect that OECD recommendations based on the results of the conducted analysis will become a platform for further successful implementation of reforms in the company, will allow us to reach a new level of corporate governance and ensure transparency in line with the world standards,” said Vsevolod Kovalchuk.
The OECD activity is aimed at strengthening and increasing the efficiency of economies and improving the socio-economic conditions of countries. The OECD corporate governance principles are used by most countries around the world. They are based on the analysis and experience of the development of world economies and offer an integrated approach that makes a state enterprise’s governance effective, transparent and prevents corruption.