Secretariat welcomes milestone law for corporate governance reform in Ukraine

With the adoption of Law 9311-1-d at the Parliament’s session of today, the Verkhovna Rada paved the way for the long-awaited corporate governance reform of the transmission system operator for gas, GTSOU. GTSOU was created as a subsidiary of a state-owned holding company in the course of unbundling. This two-layered structure failed to ensure independence and efficient operation of GTSOU and will now be abolished after the adoption of the new Law. The shares in GTSOU will be held by the Ministry of Energy, while its role in the company’s decision-making will be mitigated by a new charter and a new independent supervisory board. 

The Secretariat, in close collaboration with the International Monetary Fund, the European Commission, the World Bank and the independent corporate governance experts Andriy Boytsun and Oleksandr Lysenko, has supported the Rada, the Government and GTSOU in making this reform happen. According to the adopted Law, the Secretariat will also have to issue a binding opinion of the transmission system operator’s new charter.