22.07.2026
On July 16, Energy Club held a forum in Kyiv “Corporate Governance in Energy: From Formal Rules to Real Responsibility”, which was the result of a three-month special project dedicated to the development of a modern model of corporate governance in the Ukrainian energy sector. During this time, representatives of energy companies, members of supervisory boards, lawyers, consultants and experts discussed practical aspects of corporate governance, and the final discussion brought together key conclusions and views of the participants on the role of the state, supervisory boards, management responsibility and the implementation of international standards.
One of the speakers at the forum was Oleksandr Trokhymets, a lawyer and head of the Energy Law Committee of the National Bar Association of Ukraine. After the event, he focused in more detail on one of the most important issues of the professional discussion – the relationship between the state as an owner and state-owned enterprises. The expert explained why, in his opinion, state-owned companies cannot be identified with the state, what role management bodies should play, why they should be a safeguard against unjustified interference by the owner, and why state-owned enterprises should operate according to the same market principles and efficiency criteria as private business.
There were many interesting opinions at the forum “Corporate Governance in Energy: From Formal Rules to Real Responsibility”, held by Energy Club on July 16, 2026.
In the context of the role of management bodies of state-owned enterprises (more precisely, enterprises where the state’s share in the authorized capital is 100% or, at least, more than 50%), to which the supervisory board also belongs, one of the participants stated that such management bodies should carry out the will of the state. Since the property rights are exercised on behalf of the state by its bodies (the Cabinet of Ministers, ministries), their will, including political will, must be implemented by the management bodies of these enterprises.
I cannot agree with this opinion.
An enterprise, even 100% of the authorized capital of which belongs to the state, cannot be identified with the state. Just as an enterprise cannot be identified with its shareholder (or shareholders). Moreover, the property of an enterprise from the moment of its transfer to the authorized capital of this enterprise (or acquisition of new property during its economic activity) is not the property of the owner (shareholder) of this enterprise.
Therefore, blindly fulfilling all the whims of the owner of the enterprise cannot be a method of activity of the management bodies of such an enterprise. Management bodies should be a safeguard against erroneous or even illegal attempts by the owner to influence the activities of the enterprise.
In the energy sector, the state owns a significant number of enterprises. Among them are those that, by law, cannot belong to anyone but the state (gas transportation system operator, transmission system operator NEC “Ukrenergo”, NNEGC “Energoatom” and others). But these enterprises should not perform state functions such as social protection, for example. And they do. This is the same PSO (cheap electricity for the population).
In my opinion, any economic enterprises, regardless of who owns them – the state or a private person, should be in the same conditions for conducting economic activity. The state should not impose the solution of social or other issues, which, in fact, is the main task of the state, on the enterprises it owns. It should solve these issues at the expense of budget funds. And state enterprises should fill the budget with funds received as profit from their commercial activities.
The efficiency criteria in both state and private enterprises should be the same – profit, capitalization, cost of fixed assets and others.
Therefore, to identify the state with state-owned enterprises, in my opinion, is a false idea, and even harmful to the economy. Otherwise, the economy will be unbalanced, which is what we are currently observing in Ukraine.
The discussion once again confirmed: corporate governance is not only about changing the rules or the structure of supervisory boards. First of all, it is about a clear division of responsibility, the independence of management decisions and the creation of conditions under which state-owned energy companies operate as an effective business, and not as a tool for implementing current political decisions.
Olexandr Trokhymets’ position became another expert opinion in the discussion that Energy Club launched within the framework of a special project on corporate governance. It emphasizes that effective governance of state-owned energy companies is impossible without a clear distinction between the roles of the state as the owner and the management bodies responsible for the strategic development and long-term sustainability of enterprises.
Source: Facebook
