OECD Review of the Corporate Governance of State-Owned Enterprises in Ukraine

This review evaluates corporate governance framework of the Ukrainian state-owned enterprise sector relative to the OECD Guidelines on Corporate Governance of State-Owned Enterprises (the “SOE Guidelines”). It was requested by Ukraine’s Ministry for the Development of Economy, Trade and Agriculture under the authority of the Prime Minister of Ukraine. The review received financial support from the Norwegian Ministry of Foreign Affairs. The work was implemented in the context of the Memorandum of Understanding for Strengthening Co-operation between the OECD and the Government of Ukraine.

State-owned enterprises occupy a central role in Ukraine's economy, with approximately 3,300 entities operating across key sectors, including energy, transport and infrastructure. In order to promote their efficiency, Ukraine has introduced reforms aimed at improving corporate governance practices, particularly among economically important state-owned enterprises. Despite progress, reform efforts have generally been halting and piecemeal, and in some cases they have even been reversed.

Building on previous sectoral studies, the review provides an outline of the state-owned enterprise landscape in Ukraine and an assessment of state ownership and corporate governance practices against the SOE Guidelines. It identifies a number of gaps between actual policies and practices and the recommendations laid down in the SOE Guidelines. The review provides immediate as well as more long-term priorities to help improve Ukraine's institutional and legislative frameworks, and governance practices in the state-owned sector to ensure that state-owned enterprises operate efficiently, transparently and in an accountable manner.