Structural Separation of Accounts in Key State-Owned Enterprises in Ukraine
The Project focuses on State Owned Enterprises in Ukraine, including their legal and regulatory framework. The overall objective is to assist Ukraine in implementation of the State Owned Enterprises (SOEs) sector reform, as a crucial part of the EU Acquis in Ukraine. Meanwhile, the specific objective is to support the Ministry of Economy of Ukraine and other line ministries to prepare for and implement the separation of accounts between public service obligations (PSO) and non-PSO activities in all top key Ukrainian SOEs approved by the Cabinet of Ministers.
Activities involved in the project cover: review of the horizontal legislation applicable to all SOEs in Ukraine and the sectoral legislation, review of the statutory laws and activities of all top key SOEs, preparation of the roadmap for SOEs account separation, and preparation and support to Government adoption of the legislative amendments to ensure mandatory separation of accounts.
Implementation
The project is implemented by the NTU Consortium, following a practical approach structured around six key activities.
- Stakeholders’ Engagement and Preliminary Consultations: Initial consultations, stakeholder mapping, and comprehensive needs assessment.
- Legislative and Regulatory Review: horizontal legislation analysis, assessing compliance with EU state aid rules and identifying necessary amendments, examining sector-specific regulations in key areas, working closely with the "Competition and State Aid Rules and practices alignment with the EU acquis" (COMPASA) project;
- SOE-Specific Analysis and PSO Definition: analysing the statutory laws governing each key SOE, identifying and defining the PSO activities for each SOE, conducting a market failure analysis, developing and providing methodological guidelines for each SOE to calculate PSO compensation accurately;
- Roadmap Development: creating a detailed roadmap, drafting necessary legislative amendments, defining operational procedures for implementing the account separation;
- Implementation Support and Monitoring: continuous technical assistance, establishing a robust monitoring and evaluation framework;
- Communication and Public Awareness: developing a communication strategy and highlighting the reform alignment with EU integration goals.
Impact
The Project implementation will entail a long-term positive impact, streamlining the Ukrainian regulatory framework on SOEs in line with EU standards. These standards are directed toward enhancement of economic growth and social sustainability at the same time. Namely, the following impacts are expected to be observed:
- Better functioning of the SOEs;
- Overall improvement of public services;
- Better governance of the SOEs and improved corporate governance;
- Created favourable conditions for attracting foreign investment;
- Strengthened market economy by ensuring fair competition and maximising benefits for the population;
- Increased transparency of the transactions between the state and its SOEs.
SDGs:
