During a seminar on preparation for validation of Ukraine’s EITI Report held on 29-30 October in Kyiv, DiXi Group expert Taras Tkachuk presented a study of the role played by the national oil and gas company in the sector’s development.
Speaking at a session of the section for transparency of state enterprises, Taras Tkachuk presented an overview of the study by the Natural Resource Governance Institute (NRGI). This study lays down NRGI’s recommendations concerning information disclosure by state-owned extractive enterprises based on EITI standards and reports by the World Bank, OECD and Transparency International. These recommendations are also based on a number of publicly-accessible NRGI reports on transparency of and information disclosure by state enterprises and on an analysis of the best existing practices.
In his speech, he outlined the main challenges faced by the company and recommendations on overcoming risks, in particular, concerning profit decrease after unbundling, decline of oil production output, Ukrnafta’s tax debts and unattainability of goals set in the Concept of Ukraine’s Gas Production Sector Development until 2020.
The seminar reviewed changes in the 2019 EITI Standard, EITI requirements concerning state enterprises, and Ukraine’s progress in implementing the Extractive Industries Transparency Law. A discussion took place regarding corrective actions, ways of implementing them, and the main steps of Ukraine’s second validation. In particular, the attendees discussed the following points which concerned state enterprises: stake held by the state, production output data, completeness of information, income from transmission, operations involving state enterprises, data quality, quasi-fiscal expenses, contribution to the economy.
The seminar was attended by representatives of the EITI International Secretariat, EITI National Secretariat, Ministry of Energy and Environmental Protection, Finance Ministry, Ministry of Economic Affairs, State Fiscal Service, State Property Fund, state-owned extractive enterprises and CSOs.
The seminar was held by the Extractive Industries Transparency Initiative (EITI) National Secretariat Ukraine with the support from the International Renaissance Foundation.