Corporate governance reform for state assets could guide municipal enterprises: Oleksii Sobolev

Transparency, accountability, professional supervisory boards, and efficient asset use – principles already being implemented in Ukraine’s state-owned enterprises – could serve as a roadmap for municipal enterprises in critical infrastructure. This was stated by First Deputy Minister of Economy Oleksii Sobolev during discussions on implementing corporate governance in strategically important municipal enterprises in line with OECD standards.

“Amid the ongoing war, we need effective approaches to operations and trust – both domestically and from external partners. Transparent governance rules, professional supervisory boards, and accountable management pave the way for attracting investments for recovery and development. Thus, the experience of reforming corporate governance in state-owned companies provides a solid foundation for meaningful changes in the municipal sector,” said Oleksii Sobolev.

In his speech, the First Deputy Minister shared insights from the reform of corporate governance in the state sector.

Over the past year, Ukraine has made significant strides toward creating a transparent and effective model for managing state-owned companies:

• Law No. 3587-IX was adopted, establishing unified corporate governance rules in line with OECD standards.
• The State Ownership Policy was approved, defining the purpose and principles of state asset management.
• Several strategic companies were corporatised, and supervisory boards with a majority of independent members were established.
• The first independent evaluations of supervisory board performance were conducted for LLC “Gas TSO of Ukraine” and NJSC “Naftogaz of Ukraine.”

This experience could guide municipal enterprises, particularly in critical sectors. Consequently, developing a legislative framework for governance at the local level is a logical continuation of the systemic transformation of public asset management.

The event discussing the concept of legislative regulation for implementing corporate governance in municipal enterprises of critical infrastructure was organised by the EU Anti-Corruption Initiative.