Ukrnafta to set up independent supervisory board by end of 2023 - CEO

MOSCOW. Oct 30 (Interfax) - Ukrnafta will set up an independent supervisory board by the end of 2023, Alexei Chernyshov, Naftogaz of Ukraine board chairman and CEO, said following a shareholder meeting.

"We have approved terms and a procedure for selecting independent members of the company's supervisory board. This procedure will be completed and Ukrnafta's independent supervisory board will be put together before the end of 2023," Ukrainian media quoted Chernyshov as saying on his social account.

Supervisory board members will be selected based on the Organization for Economic Co-operation and Development (OECD) Guidelines on Corporate Governance of State-Owned Enterprises, he said.

"Another big step has been made toward transforming Naftogaz Group into a modern national energy corporation," Chernyshov said.

Ukrnafta Director Sergei Koretsky said that participants in the shareholder meeting decided to hold a tender for selecting new supervisory board members, which he described as an important step, as the current supervisory board members were appointed at a difficult time requiring quick responses to critical situations and steps toward restoring or stabilizing the company's operations.

"I thank all of the current members for constructive cooperation," Koretsky wrote on social media.

As reported, Ukrnafta planned to increase oil production by 5.8% (0.077 million tonnes) to 1.447 million tonnes and gas by 0.3% (0.003 billion cubic meters) to 1.04 billion cubic meters in 2023.

The Headquarters of the Supreme Commander-in-Chief ruled on November 5, 2022 to expropriate Ukrnafta shares, except for the controlling stake held by Naftogaz, as military assets while martial law remains in effect. Prior to the expropriation, firms belonging to Igor Kolomoisky and Gennady Bogolyubov owned about 42% in Ukrnafta.