Page 14 - FSUOGM Week 43

FSUOGM POLICY FSUOGM

Ukrainian Cabinet approves new

ownership policy at Naftogaz

UKRAINE UKRAINE’S Cabinet of Ministers has approved corporate governance system based on OECD
a new ownership policy at Naftogaz that stresses standards that allows Naftogaz’s supervisory
The encouraging the government’s commitment to gas market board to “fulfil its duties and that respects its
step comes after the reform and the independence of the gas suppli- independence.”
resignation of one of er’s supervisory board. The company’s current supervisory board
Naftogaz's independent The move comes after one of the independent is chaired by Clare Spottiswoode, a former UK
directors. directors on Naftogaz’s board, US businessman gas market regulator. It also includes Bruno
Amos Hochstein, resigned earlier this month, Lescoeur of France and Ludo Van der Heyden of
complaining about the government’s resistance Belgium, as well as state representatives Nataliya
to reforms and interference in the board’s work. Boyko and Yuliya Kovaliv. No other members
The new policy outlines the state’s main pur- have indicated they will follow Hochstein in
poses for owning Naftogaz and is in line with resigning.
OECD guidelines, Naftogaz said in a statement There have been signs of political interference
on October 21. Those purposes include ensuring at other Ukrainian state enterprises. Ukraine’s
the “successful transformation of the energy sec- central bank governor Yakiv Smolii resigned in
tor and completion of the reform of the Ukrain- July after what he said was “sustained political
ian natural gas market.” pressure.” Earlier in May, the chair of the supervi-
Other goals are ensuring secure gas supply to sory board of state company MGU, which man-
Ukrainian consumers, freeing the country from ages Ukraine’s newly spun-off gas transmission
independence on gas imports and protecting system operator GTSOU, was dismissed because
Ukraine’s interests in both domestic and inter- of “improper organisation” of the board’s work.
national markets. Boltz, a senior EU energy advisor, defended his
The Cabinet has also pledged to ensure a performance. ™

Naftogaz rejects $1.2bn tax claims

UKRAINE UKRAINE'S state-run oil and gas company Naf- agreement on its restructuring; therefore accu-
togaz considers the multi-billion dollar claims sations of loss of profits due to failure to submit
Naftogaz says the against the company recently voiced by the State nominations for gas supplies to such companies
claims relate to different Tax Service to be groundless, Interfax Ukraine sound illogical.
interpretations of tax reported on October 21. Claims of lost profits on gas transit operations
law. The tax service claims that Naftogaz owes are also unfounded, since Naftogaz, upon receipt
the government UAH34.6bn ($1.2bn), which of compensation from Gazprom in arbitration,
included "the failure to include the amount of lost reflected income and paid income tax and divi-
profit on gas transit operations recognised by the dends on the profits.
Stockholm court in the amount of UAH71.86bn, In addition, the inclusion of VAT in the cost
or $2.56bn, in its income; overestimation of the of the transit service is not a violation, as indi-
cost by the amount of VAT tax liabilities, accrual cated by the clarification received by the com-
on transactions for the supply of transit services pany from the State Tax Service.
to non-residents, Naftogaz's failure to provide Naftogaz added that the old claims against
nominations to heat generating and heat sup- the company and its management regarding
plying companies for the supply of gas and not allegedly non-payment of VAT on the sale of gas
reflecting such transactions in VAT tax liabilities. purchased from Gazprom to consumers are not
In response, Naftogaz said on its Facebook true, in particular, UAH8bn accrued under this
page that the stated claims arose largely due to claim to be paid by Naftogaz Executive Board
different interpretations and legal collisions, chairman Andriy Kobolev was cancelled by
which the company had repeatedly asked to be court.
eliminated. The company urged not to "juggle the
Naftogaz, in particular, recalled that it does huge sums that Naftogaz could allegedly
not have the right to sell gas to companies that bring, although, of course, they do not exist in
have a large debt to it and did not enter into an nature."™

P14 www. NEWSBASE .com Week 43 28•October•2020