Page 7 - FSUOGM Week 25 2021

FSUOGM COMMENTARY FSUOGM

Naftogaz CEO Yury
Vitrenko.

of a new operating model and divisional man- The NACP ordered the Cabinet to dismiss
agement structure, the implementation of Vitrenko as his appointment allegedly violated
cross-functional processes, and the development anti-corruption legislation. The agency found a
of process databases. Peter van Driel, chief finan- conflict of interest in this appointment, as before
cial officer, will be responsible for the coopera- that Vitrenko had occupied the position of act-
tion with Ukrnafta. ing energy minister and had influence over Naf-
“Naftogaz keeps its firm position on protect- togaz. The legislation prohibits Vitrenko from
ing the interests of Ukraine in international arbi- occupying top positions in Naftogaz for one year,
trations. In the case over the illegal expropriation the NACP stated.
by Russia of assets of Naftogaz group, hearings Justice Minister Denys Malyuska commented
will be held in November 2020 in The Hague. on June 15 that the NACP decision is impossible
Naftogaz will be represented by Yaroslav Tek- to implement, as the Cabinet has no power to
lyuk, chief legal officer, who was one of the top dismiss the Naftogaz CEO.
team members involved in Naftogaz’s Stockholm Spottiswood warned Ukraine’s PM in early
cases since 2014. The team will be reinforced by May in a letter pointing at possible conflicts of
Lana Zerkal, who had a number of outstanding interest in Vitrenko’s appointment. Spottiswood
results in Ukraine’s litigation with Russia over also stated that Vitrenko was never considered
the annexation of Crimea.” by the board “as a feasible CEO candidate.”
“The initiative of Spottiswood is in line with
Board on board our expectations. Taking into account that two
Clare Spottiswood, head of the Naftogaz super- other independent members of the Naftogaz
visory board, supports the dismissal of newly supervisory board share her view on Vitrenko,
appointed CEO Yuriy Vitrenko, on June 16. it is highly likely that the board will vote for
The initiative is a consequence of the June 15 Vitrenko’s dismissal (the votes of three inde-
resolution from the National Agency on Corrup- pendent members are enough to adopt such
tion Prevention (NACP) against Vitrenko and a decision). In such a case, the Cabinet will
Spottiswood considers that it is in the interest of have few reasons to ignore the NACP order to
Naftogaz, Interfax-Ukraine reported. remove Vitrenko. However, if there is ‘no polit-
According to Spottiswood, Prime Minister ical will’ in Vitrenko’s dismissal, all the gov-
Denys Shmyhal is obliged to decide on Vitren- ernment representatives to the board would
ko’s dismissal in ten days. “I have convened an ignore the board meeting and in this way block
extraordinary supervisory board meeting to adopting the decision on Vitenko,” an analyst
discuss the CEO suspension. To meet the high- at the Kyiv-based Concorde Capital brokerage
est standards of proper corporate governance, I said in a research note.
believe, the suspension is in the interests of both Vitrenko and the justice minister said in sep-
Naftogaz and Ukraine,” Clare Spottiswoode arate statements that the appointment complied
noted in a letter along with two Naftogaz super- with the law and the NACP order would be chal-
visory board members. lenged in court. ™

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