Increasing transparency and efficiency at Naftogaz
Intensive policy dialogue in support of wide-ranging corporate governance improvements accompanied a US$ 300 million (€276 million equivalent) sovereign guaranteed loan to Naftogaz, the Ukrainian national oil and gas company, for the purchase of winter gas from interconnections with the EU.
As a condition of the EBRD financing, the Ukrainian government and Naftogaz agreed to implement a corporate governance action plan at the firm. This provides for the creation of a supervisory board of independent and qualified directors, the strengthening of internal audit, compliance, anti-corruption and risk management functions, and the establishment of an ownership and governance structure in line with best international practice. The company also followed the Bank’s public sector procurement standards when purchasing gas with EBRD funds.
Through the conditions attached to its loan and the advice it provides, the EBRD is helping to make Naftogaz more open, transparent and efficient and contributing to wider efforts to reform the Ukrainian energy sector.