NJSC Naftogaz Ukrainy and the Ministry of Defense of Ukraine, as the sole shareholders of PJSC Ukrtatnafta, have launched the process of forming an independent supervisory board of the company.

"The corresponding decision of the general meeting of the company was made on May 21, 2024," the Naftogaz group said on Tuesday.

According to Head of Naftogaz Oleksiy Chernyshov, the group continues to systematically implement corporate governance reform at all key enterprises where Naftogaz is a shareholder.

"The election of an independent supervisory board of Ukrtatnafta will contribute to the efficiency of the company and ensure control over its activities in accordance with OECD requirements," the CEO said on the Naftogaz website.

According to the group, the procedure for electing and appointing the board will be carried out in accordance with the Organization for Economic Co-operation and Development (OECD) guidelines on corporate governance in state-owned enterprises.

"Independent representatives, elected through a public and transparent competition, will form the majority in the future supervisory board. It will also include representatives of shareholders," Naftogaz company said.

On November 5, 2022, the headquarters of the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer the share of corporate rights of Ukrtatnafta belonging to private owners to the state. Currently, they are managed by the Ministry of Defense. The remaining 43.05% of the company's shares belong to NJSC Naftogaz Ukrainy.