The Government has adopted a resolution providing for the reorganisation of SE NNEGC Energoatom by transforming it into JSC NNEGC Energoatom, 100 per cent of the shares in the authorised capital of which will be owned by the state and will not be subject to privatisation or other alienation. The relevant decision was made at a meeting of the Cabinet of Ministers of Ukraine on May 2, 2023.

“The Government continues its policy of transforming state-owned enterprises into joint stock companies. This is an integral part of the corporate reform. The companies that remain in state ownership must fully implement a corporate governance system. That is, management should be controlled not by officials but by members of the supervisory board, most of whom should be independent in accordance with the OECD best practice principles. I am confident that the corporatisation of Energoatom will contribute to more efficient management of the company and attract investment in its development,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

According to the Government’s resolution, a commission to transform the state enterprise National Nuclear Energy Generating Company Energoatom into a joint-stock company will be established and its members approved.

This commission will then draft and submit for approval a plan for the transformation of SE NNEGC Energoatom into a joint-stock company, and will duly notify the relevant authorities of the reorganisation decision. From the date of publication of the announcement of the reorganisation decision, creditors will have a period of two months to file their claims with the company.

A separate inventory commission will compile a consolidated property inventory and a list of non-current assets to be independently valued. The State Property Fund of Ukraine will be responsible for reviewing the company’s property valuation report. On the basis of the independent valuation of the property, the commission will submit to the Cabinet of Ministers for approval an act on the valuation of the property to be contributed to the authorised capital of the company.

Ultimately, the decision to issue shares in the joint-stock company and the approval of the charter will be a key moment in the transformation of SE NNEGC Energoatom into JSC NNEGC Energoatom, which will further increase the company’s transparency to stakeholders and improve the corporate governance system.

For reference

The state enterprise National Nuclear Energy Generating Company Energoatom is the largest electricity producer in Ukraine.

The company operates four nuclear power plants: Zaporizhzhia, Rivne, South Ukraine and Khmelnytsky, which operate 15 nuclear power units (13 VVER-1000 and two VVER-440) with a total installed capacity of 13,835 MW. The company also owns the Tashlyk PSPP (453 MW), the Oleksandrivska HPP (25 MW) and the Centralised Spent Fuel Storage Facility in the Chornobyl zone.

The transformation process of SE NNEGC Energoatom is carried out in accordance with the Law of Ukraine “On Joint Stock Company National Nuclear Energy Generating Company Energoatom” No. 8067 of February 6, 2023.