10:45 31.08.2022

GTSOU corporate reform implies company's transfer to Energy Ministry, creation of supervisory board, board of directors – Makogon

2 min read
GTSOU corporate reform implies company's transfer to Energy Ministry, creation of supervisory board, board of directors – Makogon

The currently discussed corporate reform of Gas Transmission System Operator of Ukraine LLC (GTSOU) provides for the transfer of 100% of the company to the Ministry of Energy, the creation of a supervisory board and board of directors, Head of GTSOU Serhiy Makogon has said.

"This issue is being developed within the working group at the site created by NEURC [the National Energy and Utilities Regulatory Commission of Ukraine]. MGU [JSC Mahistralni Gazoprovody Ukrainy], the Ministry of Energy, the regulator, the European Energy Community and the World Bank, which previously provided their recommendations on corporate reform in the company, are involved in the process," he said in an interview with Interfax -Ukraine.

According to him, even the supervisory board of MGU, which owns 100% of GTSOU, agrees that the current management system of the company with intermediary MGU is inappropriate.

Makogon confirmed "certain disagreements" between some members of the supervisory board of MGU and the leadership of GTSOU, noting that "some members of the supervisory board are trying to interfere in the company's operations and do not quite understand the tasks of the board."

"Attacks on me and attempts to urgently dismiss me intensified significantly after my letter to the Prime Minister of Ukraine criticizing the existing management model and proposals to transfer GTSOU under the control of the Ministry of Energy, create a supervisory board and board of directors directly at GTSOU, and liquidate MGU," he said.

As a leader, he has met 97% of the targets set for him by the supervisory board for 2021, he said.

"Of course, the supervisory board has the right to dismiss the head of the company if he does not work efficiently and does not achieve his goals. The goals that the supervisory board set for me in 2021, I reached by 97%. And for 2022 they have not yet been set for me, although it is September now," he said.

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