Ukrnafta finalizing work on 5-year strategic investment plan

MOSCOW. Oct 31 (Interfax) - The Ukrnafta supervisory board and management are finalizing the work on a five-year strategic investment plan, Ukrainian media said, citing the company press service.

The document was discussed at a meeting of the supervisory board, all members of which met in Ukraine for the second time this year and held dozens of meetings with managers, shareholders and key stakeholders in October.

Following the strategic planning meetings, the supervisory board expressed satisfaction with the direction of Ukrnafta development and set quite ambitious and challenging goals for the top management, Supervisory Board Chairman Duncan Nightingale said.

In his words, the new strategic plan envisages investment in the upgrade of equipment and personnel development as an important step towards coping with the historical challenges of underfinancing and obsolete physical assets of the company.

International management practices and corporate governance principles are being actively implemented in accordance with OECD standards.

The transition to European standards should help Ukrnafta significantly improve its operational, financial results and reputation in the long term. It is also important to make the improvements as soon as possible in the context of Ukraine's ongoing European integration, Nightingale said.

Ukrnafta is the largest oil producing company in Ukraine and the operator of the national gas station network. It took over management of Glusco assets in March 2024 and currently operates a network of 545 gas stations, including 460 of its own and 85 as a manager.

Naftogaz of Ukraine is the largest Ukrnafta shareholder with a stake of 50% + 1 share. The Ukrainian Armed Forces Supreme Commander-in-Chief Headquarters decided in November 2022 to transfer the stake of private owners in Ukrnafta to the state. The stake is currently managed by the Defense Ministry.