Ukraine to improve selecting, appointing members of supervisory boards of state companies by Aug 2025 - program with IMF
Ukraine has committed to improving the procedure for selecting and appointing members of supervisory boards of state-owned enterprises by August 2025, and will also adopt a roadmap for reforms in the field of selecting their members of supervisory boards of state-owned enterprises, according to the Extended Fund Facility program with the International Monetary Fund (IMF), updated according to the results of the seventh review.
"We will revise the selection and appointment processes for SOE supervisory board members and adopt appropriate changes to the relevant CMU by-laws, including Resolutions 142 and 143, by August 2025 (proposed Structural Benchmark, August 2025) in consultation with fund staff and international partners," according to the updated memorandum.
"At the same time, we will adopt a roadmap for more substantial medium-term reforms of the SOE board recruitment in line with international best practices, taking into account the status of SOEs and results of the triage. In particular, the roadmap would aim for a) streamlining and centralizing the selection procedure for the supervisory board candidates, including through an IFI-agreed monitoring process; b) clearly identifying and delineating the roles and responsibilities of key decision makers; c) increasing efficiency of each separate stage of the process and thus shortening the time for selections’ completion; d) ensuring proper compositions of supervisory boards with regards to SOE profile and required competencies; e) improving onboarding for new board members," reads the report.
"We have produced a comprehensive SOP, State Dividend Policy and privatization strategy. We commit to review and publish the SOP by December 2025. More broadly, we will also assess he financial viability of key SOEs as an input to developing a framework to deal with quasi-fiscal costs, including legacy Public Service Obligations (PSOs) with the help of IMF TA," the report says.
"We are exploring options, in close consultation with international partners, to enhance SOE management, including the potential introduction of a centralized SOE management model, consistent with the SOE corporate governance reform agenda in the SOP and best international practices. This will include defining the roles and mandates of key government institutions engaged in SOE management, such as the Ministry of Finance, Ministry of Economy, the government, and the State Property Fund," it says.