Page 4 - FSUOGM Week 18 2021

FSUOGM COMMENTARY FSUOGM

Andriy Kobolev (Photo: Wiki)

Ukrainian cabinet

fires Naftohaz CEO

Kobolev’s dismissal has drawn widespread criticism in the business community

UKRAINE’S Cabinet of Ministers has this, the Ukrainian government can’t claim hav-
appointed Yuriy Vitrenko as the new CEO of ing any corporate governance,” Aslund tweeted.
WHAT: Naftogaz, following the Cabinet’s dismissal of
The widely respected Andriy Kobolev. The reshuffle occurred on April Criticism from Naftogaz
head of state-owned Naf- 29, as Naftogaz reported a net loss of UAH19bn Naftogaz has also blasted the cabinet’s decision.
tohaz has been dismissed ($684mn) for 2020. In a statement dated April 29, it said the move
from his post. The firing of Kobolev, a widely respected was illegal and beyond the scope of the prime
figure who had led the state-owned enterprise minister’s powers.
WHY: (SOE) since 2014, appears to have been highly “The decision adopted by the Cabinet of
Kobolev’s firing appears irregular. Usually, the supervisory board fires Ministers of Ukraine is a legal manipulation.
to have occurred under the CEO, but Prime Minister Denys Shmyhal The dismissal of the Supervisory Board for two
irregular circumstances. suspended the board’s work for two days last days in order to make a decision on the dis-
week and made the decision himself. missal of the chief executive officer is a violation
WHAT NEXT: Kobolev, for his part, says the way he was of the basic principles of corporate governance
Naftohaz has expressed sacked was illegal and has refused to leave his of state-owned enterprises,” it said. “According
concern about the possi- post. On Facebook, he wrote that he wasn’t to the Charter of Naftogaz and the Law on Joint
bility that this move will
sour relations with the aware of the dismissal and hadn’t stepped down. Stock Companies, submission of proposals to
IMF and repel investors. His stance has won support from Swedish the general meeting for appointment or dis-
economist Anders Aslund, a senior fellow at the missal of the chief executive officer along with
Atlantic Council. “This is an outrage. [Kobolev ] the relevant decision of the supervisory board is
was fired by the Ukrainian government w/o the reserved to the supervisory board and cannot be
supervisory board even being informed. After delegated to the general meeting.”

P4 www. NEWSBASE .com Week 18 05•May•2021