Kyiv court cancels order to end Naftogaz CEO contract

The Kyiv district administrative court reversed July 5 the order issued by the anti-corruption agency (NACP) to the supervisory board of Naftogaz demanding the termination of the CEO Yuriy Vitrenko's contract, the national gas company said July 6. It added that the court also cancelled the same order it made to the government.

The court's decision is consistent with the opinion of an international law firm that found that the NACP had acted in clear violation of legislation. The agency can only make these orders through the courts, not appeal directly to the Naftogaz supervisory board or any other parties, Naftogaz said.

The NACP had found that Vitrenko's appointment was illegal as he took up the position less than a year after working at the energy ministry – his place of employment up until his transfer late April when the previous CEO Andriy Kobolev was summarily dismissed. The agency first sent a respective order to the  cabinet of ministers and then followed up July 1 with another order to the Naftogaz supervisory board.

Justice minister Denys Maliuska said the NACP position was unjustified, a view shared by the Naftogaz in-house legal team and supported by the Koretsky Institute of State and Law. 

Corporate governance and corruption at state-owned companies have bedevilled Ukraine's western approaches, with a number of banks and international agencies expressing concern at the dismissal of Kobolev. That dismissal also triggered the mass resignation of the supervisory board, now back in place once more. But it has called for Vitrenko's suspension pending a review of the situation in the interests of the company and Ukraine.