The Cabinet of Ministers has adopted a resolution transferring control of the Ukrainian Railways public joint-stock company (Ukrzaliznytsia) from the Ministry of Infrastructure to itself. The resolution No. 52, which approved Ukrzaliznytsia’s new charter, was adopted on 18 January 2017.
In particular, the Cabinet of Ministers stripped the Ministry of Infrastructure of part of its functions involving management of Ukrzaliznytsia. Now, all decisions involving management of the company and its financial statements will be made at meetings of the Cabinet of Ministers.
The Ministry of Economic Development and Trade will be responsible for preparing drafts of such decisions.
In addition, according to the Cabinet of Ministers, composition of Ukrzaliznytsia’s supervisory board will be changed and independent directors will be appointed onto it on a competitive basis, as required by amendments to the legislation.
This resolution also brings Ukrzaliznytsia’s charter in line with the law "On Amendments to Certain Legislative Acts of Ukraine on Management of State and Municipal Property" of 2 June 2016, which the parliament adopted as part of the reform of corporate governance in the public sector.
Minister of Infrastructure Volodymyr Omelian recently said that he would seek return of control of Ukrzaliznytsia even if he had to do it through the courts.