Page 18 - FSUOGM Week 25 2021

FSUOGM NEWS IN BRIEF FSUOGM

will be taken into account, as the direct of Vitrenko as Naftogaz CEO on April 28 the Naftogaz supervisory board. As some
interests of the Germans and Americans was possible because that day the Cabinet of board members were the first to point
will come to the fore. Kuleba’s tweet might had taken on the powers of the company’s at the conflict of interest in Vitrenko’s
be the strongest action that would not be supervisory board (as the Cabinet had appointment and showed their disrespect
considered an intrusion by its intended fired for a couple days the entire board for Vitrenko in the previously mentioned
targets,” an analyst at the Kyiv-based in a scandalous way). “Does it mean that, letter in May, it seems that they would be
Concorde Capital brokerage said in a in order to implement the NACP order, glad to initiate such dismissal. Key question
research note. Cabinet again has to terminate the power now is: whether all this will prevent
of the supervisory board members of Naftogaz from issuing a new Eurobond in
Naftogaz?” Malyska commented. He also order to smoothly and timely refinance
Vitrenko appointment to expressed his doubt that a one-year ban to its $335mn bond maturing in July 2022.
Thus far, we see the likelihood of smooth
occupy positions in Naftogaz can be applied
Naftogaz violates anti- to Vitrenko, who was an acting energy refinancing as high. Clearly, to eliminate
the existing risks, it is important that
minister for less than one year.
corruption legislation, “illegal” and an indication of applying the situation around the appointment of
Vitrenko called the NACP’s ruling
Vitrenko is resolved as soon as possible
corruption prevention of “selective justice.” He claimed he had (either he is dismissed, or he is able to
no power to influence Naftogaz at his
challenge the ruling of NACP soon),” an
agency concludes position as acting energy minister. He analyst at the Kyiv-based Concorde Capital
brokerage said in a research note.
also stated that the one-year ban on
The National Agency on Corruption taking a top position in Naftogaz by a
Prevention (NACP) concluded that the former official violates the spirit of the
Cabinet violated anti-corruption legislation law, as such an item was designed to
by concluding a contract with Yuriy prevent official’s preferential treatment CENTRAL ASIA & SOUTH
Vitrenko as CEO of Naftogaz (NAFTO), over private companies in exchange
the agency reported on June 15. It issued for future employment there. Also, he CAUCASUS
a resolution demanding that the Cabinet provided an example when a former
implement measures to terminate the deputy infrastructure minister (whose Uzbekistan in talks with
contract, as well as cancel certain articles department controlled Ukrainian Railways)
of Cabinet’s April 28 resolution based on was appointed as acting CEO of Ukrainian Honeywell division to
which Vitrenko was appointed as Naftogaz Railways in 2017, and the NACP found no
CEO. The NACP explains its decision by conflict of interest there. modernise refinery
legislation on the conflict of interest that “The NACP’s conclusions clearly made
does not allow Vitrenko (who was an acting reputational damage to Vitrenko and the Uzbekneftegaz and UOP Limited, a
energy minister before April 28 and at this Cabinet, even in the case that they are able subsidiary of Honeywell International,
position allegedly prepared government to challenge them in courts. Meanwhile, are negotiating a project to modernise
resolutions on Naftogaz) to occupy top for international observers, the ruling only and reconstruct Uzbekistan's Bukhara Oil
positions in Naftogaz for one year. confirms what the independent members Refinery, Reuters said on June 16 with
Ukraine’s Cabinet is going to question of Naftogaz supervisory board hinted in reference to the Central Asian country's
the resolution of the NACP in courts, Justice their open letter in early May. We agree government.
Minister Denys Malyuska commented with Malyuska that it would be very The companies were discussing a
the same day. In his post in social media, hard for the Cabinet to cancel Vitrenko’s $184mn project, which would include
Malyuska hinted that the NACP’s resolution appointment without jumping into new funding from EXIM Bank (US), it added.
is impossible to implement. In particular, scandals. However, the easiest way to do An agreement to provide technical
he recalled that the Cabinet’s appointment it is to fire Vitrenko on the initiative of licences for the production of Euro-5 fuel

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