Page 6 - FSUOGM Week 41

FSUOGM COMMENTARY FSUOGM

Independent director at

Naftogaz resigns, irked by

opposition to reforms

Hochstein's departure is reminiscent of the walk-out of all the company's previous independent
directors in 2017, again over a lack of government commitment to reform

UKRAINE US businessman and former diplomat Amos Resisted at every step
Hochstein has resigned as an independent In an article written for the Kyiv Post, Hochstein
WHAT: director on the supervisory board of Ukrainian complained that the company’s management’s
US businessman Amos national gas company Naftogaz, complaining of effort over the years to "create a new corporate
Hochstein has resigned opposition to reforms and of political interfer- culture, transparent mechanisms and an adher-
as a director at Naftogaz. ence. His departure comes as a power struggle ence to international standards were resisted at
over control of the state-owned firm heats up, every step of the way."
WHY: with prosecutors recently launching a treason “The company has been forced to spend
Hochstein complains of probe into its management. endless amounts of time combating political
political interference and Naftogaz said in a statement on October 12 it pressure and efforts by oligarchs to enrich them-
opposition to reforms. had received notice of Hochstein’s resignation. selves through questionable transactions,” he
Hochstein has served in the role since 2017. said. “These efforts at sabotage increased over
WHAT NEXT: “Among the reasons behind his decision to the years as the international community expe-
His words suggest leave the supervisory board, Amos Hochstein rienced Ukraine-fatigue and the Trump admin-
the government is not mentioned growing opposition to gas market istration no longer pursued an anti-corruption
as committed to the reforms and the transformation of Naftogaz agenda.”
independence of state into an independent and efficient company,” As an example of this “sabotage,” Hochstein
institutions as it claims. the company said. “He urged the Ukrainian pointed to a memorandum that the Ukrainian
government to further ensure the independ- government signed with a US firm called Louisi-
ence of supervisory boards at state-owned ana Natural Gas Exports in May for the export of
enterprises in Ukraine as a safeguard against US LNG to Ukraine. One of the company’s exec-
corruption.” utives, Robert Bensh, was subsequently offered a

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