On Sept. 2, Law No. 3293-IX on the corporate governance of the Gas Transmission System Operator of Ukraine (GTSOU) went into effect after it was published in one of the official newspapers, Holos Ukrayiny. According to YouControl, the procedure to end Main Pipelines of Ukraine (MGU) as a legal entity began on Sept. 5. The shares of MGU are held by the Energy Ministry.
Editor’s Note: This is issue 97 of Ukrainian State-Owned Enterprises Weekly, covering events from July 7-14, 2023. The Kyiv Independent is reposting it with permission.
Ukrainian SOE Weekly is an independent weekly digest based on a compilation of the most important news related to state-owned enterprises (SOEs) and state-owned
IMF updates Ukraine’s conditions to reform SOE corporate governance; another structural benchmark set for the GTSOU. Ukraine must complete the corporate governance reform of the GTSOU by the end of October 2023.
The Long-Term Foreign-Currency Issuer Default Rating (LTFC IDR) and the Long-Term Local-Currency Issuer Default Rating (LTLC IDR) are the same across the four banks, at ‘CCC-’ and ‘CCC’, respectively. The Government Support Rating (GSR) is now also the same for all the four banks – ‘no support’ (ns) – with PrivatBank, Oschadbank, and Ukrgasbank’s GSRs downgraded from ‘ccc-’ and Ukreximbank’s GSR affirmed.
The Verkhovna Rada prefers an alternative bill on corporate governance of GTSOU over the government’s bill. On June 10, the Verkhovna Rada rejected Draft Law No. 9311 that would establish a one-off procedure for the merger of the Gas Transmission System Operator of Ukraine (GTSOU) and the Main Pipelines of Ukraine (MGU). This bill, proposed by the Cabinet of Ministers on May 19, was criticized for not meeting Ukraine’s commitments to the IMF.