Structural reforms, capital mobilization, and corporate governance – these and other topics were discussed by Ukraine’s Minister of Economy, Environment, and Agriculture, Oleksii Sobolev, on November 17 during a meeting with representatives of the International Monetary Fund mission led by Gavin Gray.
“The IMF, together with the Government, is launching a new Extended Fund Facility (EFF) program for Ukraine. The purpose of this program is to implement structural reforms in tax policy, corporate governance, procurement systems, and other areas of the economy. These key issues were the focus of our meeting with the IMF mission,” Oleksii Sobolev said.
In particular, the parties discussed capital mobilization – part of the government’s effort to formalize the economy, in consultation with the IMF. The focus is on creating incentives that help businesses legally bring assets out of the shadows, invest them in the country, and receive guarantees of protection. Experiences from other countries in implementing such mechanisms were also reviewed.
One of the key topics during the meeting was the modernization of corporate governance in state-owned companies, in light of the situation with Energoatom. Representatives of the Ministry of Economy presented a plan of action to partners, which includes specific steps: changing state representatives on supervisory boards, holding competitions for CEO positions and independent board members, updating charters and nomination committee procedures, and preparing the relevant legislation.
The discussion also covered the centralization of certain supervisory board functions, which is to be the next step in corporate governance reform, as well as the importance of financial reporting and independent audits, even during wartime.
“All of these are important steps for modernizing the economy and rebuilding the country. The new EFF program should send a strong signal of confidence from international partners and investors in Ukraine,” the Minister emphasized.
