Ukrainian parliament incorporates Energoatom nuclear operator

6 February, 10:33 PM
The Energoatom building (Photo:SE NNEGC Energoatom)

The Energoatom building (Photo:SE NNEGC Energoatom)

The Ukrainian parliament has passed the law that transforms the country’s nuclear operator Energoatom into a state-owned corporation, according to a message on the parliament website published on Feb. 6.

The law defines the procedure of forming and functioning of joint stock company Energoatom, where the state owns the 100% of the shares.

The parliamentary Committee on Energy, Housing and Communal Services specified that the issue of corporatization of Energoatom has been on the agenda since 2012.

“Corporatization doesn’t lead to a change of the owner, Energoatom remains 100% state-owned, its governing body is the Cabinet of Ministers of Ukraine,” the committee explained.

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“Shares acquired by the state as a result of JSC formation are not subject to privatization, and (the law) also provides for a ban on the division of shares owned by the state.”

They added that corporatization is changing the outdated organizational and legal form to a more modern and stable one, which is more understandable to Energoatom's partners.

Corporatization also reduces the administrative functions of property entities, and a new, transparent and publicly accountable management structure is being created.

Corporate governance increases the efficiency of a company, as it creates a possibility to respond quickly and qualitatively to the requests of market participants.

“The organization of effective corporate governance of state companies is one of Ukraine's obligations under the Association Agreement with the EU, which were announced recently," the committee added.

Corporatization of Energoatom was supported by the European Bank for Reconstruction and Development, the International Monetary Fund, and the World Bank.

Earlier, the following companies were corporatized in Ukraine: NEC Ukrenergo PJSC, Ukrposhta PJSC, Ukrhydroenergo PJSC, and Ukrzaliznytsia JSC, which deal with energy, postal services, and rail transportation.

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