29 Feb 2024 10:56

Energoatom corporatization to help implement strategic projects - Ukrainian deputy economy minister

MOSCOW. Feb 29 (Interfax) - The implementation of numerous large strategic projects depends on corporatization of the Energoatom National Nuclear Energy Generating Company and the establishment of its supervisory board, Ukrainian Deputy Economy Minister Alexei Sobolev said.

"First of all, it [corporatization] will increase confidence in the enterprise among international partners that help Energoatom draw additional funds, which it could use to build something new. A huge number of large strategic projects depends on that," Sobolev said in an interview with Ukrainian media.

Following corporatization and adoption of the bill [improving corporate governance of state companies, which was passed by the Ukrainian parliament on February 22, 2024], the company will establish a supervisory board and will have a list of grounds for its dismissal, he said.

"I mean these people will be responsible for the company for the next three to four years, the period of their contracts. This will make the entire system stable," Sobolev said.

In his words, Energoatom has additional compliance and monitoring functions. The company is due to publish more transparent reports, which also increases its publicity and credibility, he said.

"And this, in turn, either reduces the cost of financing or opens it up altogether. What I mean is international financial organizations that could not really work with Energoatom will now be able to do this with the supervisory board in place," Sobolev said.

He gave the example of the Ukrenergo electricity transmission system operator.

"You can see how much funds Ukrenergo attracted before corporatization and how much it attracts now, how fast the work is done, and what additional projects are being implemented. Something similar will happen at Energoatom," Sobolev said.

He added that transparent corporate governance of key Ukrainian energy companies is a condition for integration into Europe and the European power grid.

As reported, Ukraine plans to start building additional units of the Khmelnitsky Nuclear Power Plant in 2024. That would be two Soviet-type VVER-1000 units, as well as two AP-1000 units based on U.S. Westinghouse technology.

On February 21, 2024, Energoatom JSC received a certificate of registration of the issue of shares worth more than 306 billion hryvni.

On December 29, 2023, the Ukrainian government approved the establishment of Energoatom JSC with 100% of its shares in state ownership.

In January 2024, state registration of Energoatom JSC and registration of its charter were finalized.