Kristian Kaas Mortensen: State enterprises’ reform is a matter of great importance for Ukraine’s economics


«State companies can either provide proper basis for economic and social development of the country or be its financial burden, thus it is highly important for Ukrainian economics to reform state enterprises which at present amount to 4000 and make up 40% of Ukrainian GDP», – stated Kristian Kaas Mortensen,  President of the Baltic Institute of Corporate Governance, during his media briefing in Ukraine Crisis Media Center. «Reforms must include increase of transparency, accountability, business ethics of state companies and introduction of anti-corruption mechanisms», – he explained.

«Government is to develop a plan of reforms to settle problems with corruption and controlled status of state enterprises. Rise in profitability of such companies is also an important goal. Nevertheless, not a single plan of reforms may be a success without its top level political support » – added Mr. Mortensen

«Reform of corporate management of state enterprises, – continues Yaroslav Hrehirchak, lawyer and commercial law reform expert, – is the Maidan which is to take place in governmental offices. Dividend income received by the state and all of us as its citizens as well as what our state enterprises earn, will become the result of successful reform».

As Mr. Hrehirchak commented: «Reform may take place through creation of a certain state body performing a shareholder’s function in a state company, passing corresponding laws, improving strategic management, introducing an institute of independent directors being members of supervisory boards of such companies, and, by all means, increase of state enterprises transparency».