Page 59 - UKRRptMar21

rising from 13th to 11th place in the ranks of world steel producers. “Ukrainian steelmakers begin 2021 with the best conditions in the markets over the past 12 years,” the report says. “Demand for steel in the EU and MENA region has already fully recovered, while China will maintain low export volumes.”
9.2 ​Major corporate news 9.2.1​ Oil & gas corporate news
Ukraine’s natural gas company paid UA​ over UAH7bn ($251mn) in taxes to the state and local budgets in January 2021, making it still the biggest single contributor to the budget, the company said in a statement on February 15. Naftogaz group’s contribution accounted for 10% of the state budget revenue in January 2021. In 2020, Naftogaz group’s tax and dividend payments to budgets of all levels totalled nearly UAH142bn.
Vitrenko suggests cabinet to replace Naftogaz supervisory board, top management. ​Acting energy minister Yuriy Vitrenko sent a letter on February 12 to PM Denys Shmyhal suggesting to immediately consider replacing the supervisory board and top management of Naftogaz, lb.ua news site reported on February 15.
Vitrenko motivates the need of replacement by weak natural gas production numbers of Naftogaz (14.9 bcm in 2020, short of the plan of 20.1 bcm stipulated by the cabinet in 2017), its plan to further decrease gas production (to 9.9 – 12.5 bcm by 2025) as well as alleged financial violations revealed by the State Audit Service for UAH75.5bn and tax authorities for UAH37.3bn.
According to Naftogaz charter, the company’s supervisory board can be replaced any time by a shareholder meeting (where the cabinet is the only shareholder). Members of the company’s management board are appointed and dismissed by the supervisory board, its CEO is appointed and dismissed by a shareholder meeting upon suggestions of the supervisory board.
Recall, Vitrenko served in top positions at Naftogaz since 2014, where he was associated with leading successful court battles with Gazprom. In late 2019, he lost some of authorities within Naftogaz and started actively criticizing top management, which eventually led to his dismissal in July 2020. In late December, the cabinet appointed Vitrenko acting energy minister.
9.2.3​ Transport corporate news
SkyUp, Ukraine’s largest discount airline, started last year with double the fleet – all Boeing 737s – but carried only 1.2mn passengers, half its forecast. ​Despite a bad year, the airline retained most of its staff and is holding to its 5-year plan: add 5 to 7 new jets, open new bases and win 50% of Ukraine’s air passenger market.
This spring, SkyUp starts service from Kyiv Boryspil to two Polish cities popular with Ukrainian workers: Katowice and Lodz. At the end of May, as the tourism
59​ UKRAINE Country Report​ March 2021 ​ ​www.intellinews.com