07.10.2024
The state-owned energy trader JSC “Energy Company of Ukraine” (ECU) and the project “Activities within the framework of the reform of state-owned enterprises” (SOERA), funded by USAID and UKaid, signed a memorandum of cooperation. The program’s experts will support ECU in implementing international corporate governance standards, as well as further digitalization of the company.
Support in the area of corporate governance will include the implementation of international standards in the organization of the work of the supervisory board of ECU, including the digitalization of its functions. The memorandum also provides for the development of ECU’s risk management and internal control systems, which are important components of successful trading activities. In addition, SOERA experts will participate in the development of ECU’s ESG policy.
In the area of digitalization, it is planned to update ECU’s IT strategy and its implementation, including the acquisition of necessary licenses and equipment.
“State-owned companies should be a powerful and reliable tool in implementing the state policy on the development of Ukraine’s economy, especially during a war, when other options are extremely limited. In this context, the transparency and independence of corporate governance of state-owned companies is of particular importance, as it determines their ability to attract investments and financial assistance to strategic sectors of the economy. The cooperation between EKU and SOERA is an important step towards building and developing a modern corporate governance system of EKU. This will make the company more sustainable, competitive and understandable for external strategic partners and investors in Ukraine’s energy sector,” said Vitaliy Butenko, CEO of EKU.
“The implementation of international corporate governance standards with the support of donors will have a transformative impact on both the company and the state sector of the country’s economy. For EKU, this will increase transparency, accountability and strengthen competitiveness. For other state-owned enterprises, this is an incentive and a model for forming a culture of good corporate governance,” summarized Natalia Panova, Deputy Head of the State Property Fund of Ukraine.
Background
SOERA is a seven-year project implemented with the support of the American people through the United States Agency for International Development (USAID) and the British people through the Department for Foreign Affairs, Commonwealth and Development (UKaid). The project aims to improve public sector governance and asset management, including planning and promoting important reforms of Ukraine’s state-owned enterprises, improving the management of state and municipal assets, supporting the wartime economy, and ensuring a rapid and transparent post-war recovery.
JSC “Energy Company of Ukraine” (ECU) is a national energy trading company that offers comprehensive solutions for the purchase, sale and management of energy resources. ECU is among the TOP-5 traders in Ukraine by electricity sales volumes, leaders in cross-border energy trade, and TOP-2 traders of green electricity. ECU established the first state balancing group of electricity market participants, which is currently the largest in Ukraine. The company’s clients generate 10% of Ukraine’s GDP. 100% of EKU is owned by the state, and the company is managed by the State Property Fund of Ukraine.
