Naftogaz: The keystone of reform in Ukraine

Naftogaz worker checks valves at a compression station on gas pipeline near Kiev
Naftogaz has always been key for Ukraine due to its control over gas pipelines, but now the old guard is tightening the screws on the company's band of young reformers (source: dpa)
  • Naftogaz is a key test case of Ukraine’s young-technocrat reform model
  • Under CEO Andriy Kobolyev, the company’s finances are on the mend
  • Pushback from vested interests has demolished Naftogaz’s supervisory board
  • These developments appear to be part of a broader reform collapse in Ukraine

Ukrainian natural gas giant Naftogaz is again attracting unwelcome attention, boding ill for the company itself and for the future of reform in Ukraine. On September 19, the utility disclosed that the last two members of its Independent Supervisory Board, Paul Warwick and Marcus Richards, had stepped down. In their letters of resignation, the two British nationals complained that “despite assurances from senior politicians, deadlines have passed and commitments have not been delivered with an environment of government control … [and] political meddling becoming increasingly evident and, unfortunately, the norm.”

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