The law defines the formation procedure and the procedure for forming the authorized capital of Energoatom NAEC, 100% of whose shares belong to the state.

In the second reading, the Verkhovna Rada adopted the law on the corporatization of Energoatom.

As reported on the Council’s website, 241 People’s Deputies voted for draft law No. 8067. Corporatization reduces the administrative functions of property subjects, a new management structure is created.

The law defines the formation procedure and the procedure for the formation of the authorized capital and the functioning of the joint-stock company NAEK “Energoatom”, 100% of whose shares belong to the state.

“Corporatization does not change the owner, “Energoatom” remains 100% state property, its governing body is the Cabinet of Ministers of Ukraine. Shares purchased by the state as a result of the formation of JSC are not subject to privatization, and the division of the package of shares belonging to the state is also prohibited,” it says. in the message of the specialized committee of the Council.

Corporatization changes the outdated organizational and legal form to a more modern and stable legal form that is understandable to Energoatom’s partners.

“The organization of effective corporate management of state-owned companies is one of Ukraine’s obligations under the Association Agreement with the EU, which were announced recently,” the message reads.

The corporatization of Energoatom was supported by the European Bank for Reconstruction and Development, the International Monetary Fund and the World Bank.

The parliamentary committee noted that the adopted law provides the following benefits:

• capitalization growth, the fair value of the state company’s assets is established;
• Energoatom as JSC can create subsidiaries to implement new projects;
• JSC can attract loans without state guarantees, etc.

Corporatization of “Energoatom”:

At the end of 2019, by Decree of the President of Ukraine No. 837, the government was instructed to corporatize Energoatom by the end of 2020 and to submit the relevant draft law to the parliament.

On September 22, 2020, the head of state, by Decree No. 406, once again instructed the CMU to ensure the improvement of the management of SE “NAEK Energoatom”, in particular, to speed up the preparation and implementation of the corporatization of the mentioned enterprise.

On October 30, 2020, Petro Kotin, the head of SE Energoatom NAEK, stated that the process of corporatization of the company, which has been discussed since 2013, should be started and completed as soon as possible.