13:33 18.07.2018

Cabinet prohibits giving bonuses, awards in state-owned companies

2 min read
Cabinet prohibits giving bonuses, awards in state-owned companies

Ukraine's Cabinet of Ministers of Ukraine on Wednesday banned the payment of bonuses and awards in state companies.

"I propose ... prohibiting the payment of bonuses and rewards in state-owned companies in Ukraine. I think that salaries and bonuses should be worthy ... But as for greed, excess, I cannot support that," Prime Minister Volodymyr Groysman said.

He instructed the Ministry of Economic Development and Trade to prepare a decision that will determine the "ceiling" of additional payments. In turn, First Deputy Prime Minister and Minister of Economic Development and Trade Stepan Kubiv, said his ministry would comply in 72 hours.

As reported, the Stockholm arbitration court fined Gazprom $4.6 billion in favor of Ukraine. As a result of the decisions of two arbitration disputes on the supply and transit of gas, Gazprom is obliged to pay Naftogaz $2.56 billion.

At the end of May, Naftogaz's Supervisory Board decided to reward 41 employees of the company for a total of $46.3 million, or 1% of the fine, for contributing to the victory in litigation with Gazprom. Of the amount, personal income tax and other charges amount to more than $9 million.

The decision caused a stir and was criticized by opposition party factions, which demanded it be cancelled. Groysman called on Naftogaz to rescind the decision, and Ukraine's Prosecutor General Yuriy Lutsenko said prosecutors would look into the matter.

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