Kiev not expecting amended Ukrenergo charter to end donor funding of Ukrainian energy sector
MOSCOW. June 29 (Interfax) - Amending the Ukrenergo charter on May 19 will have no negative impact on further donor financing of the Ukrainian energy sector, Ukrainian media quoted Energy Minister German Galushchenko as saying.
"This will have no effect on the financing, which continues now and will be continuing, and donors will keep financing the Ukrainian energy sector," the media quoted Galushchenko's reply to a comment by parliament deputy Maxim Khlapuk at the government Q&A session on Friday. Khlapuk said that intervening with corporate management of state-run companies endangered cooperation with partners.
As reported, the Energy Ministry amended the charters of the Gas Transmission System Operator of Ukraine and Ukrenergo to replace a simple majority of votes required for the appointment of managers by supervisory boards with a qualified majority. Now, at least four out of five members of the Supervisory Board (three independent) must vote for appointing the head of the Gas Transmission System of Operator of Ukraine, versus five out of seven (four independent) to vote for the appointment of the Ukrenergo head.
Galushchenko explained the purpose of amending the charters of the Gas Transmission System Operator of Ukraine and Ukrenergo at the Q&A session in the Ukrainian parliament on June 6 with enhancing the position of company heads before supervisory boards.
For its part, the European Bank for Reconstruction and Development (EBRD), Ukrenergo's largest creditor, sent a letter to the company and the Ukrainian Finance Ministry on June 6, in which it noted the company's inability to promptly notify the bank of any changes to the charter and provide an opportunity to comment on them. Referring to the terms of the loan agreements, the bank recalled its right to stop the disbursement of funds and send appropriate notifications of early repayment of loans in connection with amendments to the charter.
In addition, the bank sent a letter to Galushchenko, in which it recommends completely excluding the provision of a qualified majority of votes from the charters of Ukrenergo and other public sector enterprises.
As noted by Khlapuk, a member of the Ukrainian Parliament's Energy Committee, loans provided under agreements between Ukrenergo and the EBRD, as well as the European Investment Bank (EIB) currently amount to 1.22 billion euros, of which 215.5 million euros remains undrawn. Loans granted by the International Bank for Reconstruction and Development (IBRD) amount to $509.74 million, of which $54.87 million remains undrawn.
In addition, under two grant agreements between Ukraine and the IBRD for 37.7 million euros and $200 million, 18.9 million euros and $134.5 million remain undrawn.
