The Ukrainian State-Owned Enterprises Weekly, Issue 146, covers events from Sept. 1-7, 2024. In terms of corporate governance, there were significant developments at Ukrenergo, with CEO Volodymyr Kudrytskyi being dismissed by the supervisory board despite objections from international partners. Two independent board members also stepped down due to political pressure. The dismissal raised concerns given the ongoing war with Russia and the need for stability in critical sectors. The situation highlighted the importance of adhering to corporate governance principles, especially in state-owned enterprises.
In a major wartime government reshuffle, President Volodymyr Zelensky made significant changes to his administration. The reshuffle aimed to bring new energy and strengthen the country in various sectors, including international politics and defense. The changes were seen as crucial given the ongoing conflict with Russia and the need for effective leadership during challenging times. The reshuffle reflected the government’s continuous efforts to adapt to evolving circumstances and ensure effective governance.
Following Kudrytskyi’s dismissal, there were concerns raised by international partners, including the U.S. ambassador to Ukraine, Bridget Brink. The U.S. emphasized the importance of filling the vacant positions on Ukrenergo’s supervisory board and electing a new CEO in accordance with OECD guidelines. The situation underscored the need for transparent and fair processes in appointing leadership positions in critical sectors, especially amid ongoing conflict and international support for Ukraine.
In the banking sector, Ukrainian banks reported cumulative profits of Hr 120 billion ($2.9 billion) in January-July 2024, with state-owned banks accounting for 63% of the total profits. PrivatBank was the leading contributor to profits, followed by Oschadbank, Ukreximbank, and Ukrgasbank. The strong performance of state-owned banks raised hopes for continued stability and growth in the sector, despite ongoing challenges in the economy and the impact of the war with Russia.
In terms of infrastructure, Ukrzaliznytsia, the state-owned railway company, faced financial challenges with losses totaling Hr 600-700 million ($13-15 million) in July-August 2024. The company’s CEO highlighted the impact of declining cargo volumes on profitability and projected a minor loss for the year. The situation underscored the ongoing challenges faced by state-owned enterprises in maintaining financial stability and operational efficiency, especially during times of economic uncertainty and conflict.
Overall, the developments in state-owned enterprises in Ukraine highlighted the importance of effective corporate governance, strategic leadership, and financial stability during challenging times. The events underscored the need for transparency, fairness, and adherence to best practices in governance to ensure the sustainability and success of critical sectors in the country. The government’s efforts to reshuffle leadership positions and address financial challenges reflected ongoing efforts to navigate the complexities of the current geopolitical and economic landscape.
