3 May 2023 11:52

Ukrainian govt launches Energoatom corporatization procedure

MOSCOW. May 3 (Interfax) - The Ukrainian government has backed a decision that gives a start to reorganizing the Energoatom state nuclear power company into a joint-stock company, Ukrainian media said with reference to the government's website, which, in turn, cites a statement made by Prime Minister Denis Shmygal on Tuesday.

"Energoatom is one of the largest nuclear power plant [NPP] operators in Europe, a company strategically important to the energy security of the state. We are bringing it in line with international corporate governance standards. At the same time, we retain 100% of the company's shares in state ownership," Shmygal said.

This move will ultimately increase the efficiency of management, will help raise additional funds for the implementation of new projects and strengthen energy independence, he said.

Energoatom itself has said that the government is transforming it into JSC Energoatom National Atomic Energy Generating Company, where 100% of shares in the charter capital belong to the state and cannot be privatized or disposed of in any other way.

The government has also set up a commission in charge of Energoatom's reorganization, has approved its composition, has given the company's creditors two months to file their claims, and has formed an inventory commission.

As reported, Ukraine's Verkhovna Rada on February 6, 2023 passed an Energoatom corporatization bill in the second reading, paving the way for its reorganization from a state enterprise into a joint-stock company where 100% of shares belong to the state.

Energoatom's corporatization is an element of the company's loan agreement with the European Bank for Reconstruction and Development and is envisaged by the guarantee agreement, titled "The Comprehensive Integrated Program for Enhancing the Safety of NPP Units", which has been ratified by the Ukrainian parliament.

Energoatom is the operator of all functioning nuclear power plants in Ukraine.