What were the grounds for the sky-high bonuses?

What were the grounds for the sky-high bonuses? Nobody knows…

I have received a response to my appeal to the Prime Minister Volodymyr Hroisman on the legality and soundness of paying unprecedentedly high bonuses to the management of “Naftogaz of Ukraine” in the amount of $46.3 million.

Unfortunately, Mr. Hroisman himself did not manage to provide answers to the difficult questions, and shifted this unpleasant responsibility to the Ministry of Economic Development and the Ministry of Energy, which, in their turn, do not seem to be too concerned about the soundness of the state company’s spending 1.3 billion hryvnias (according to the current exchange rate).

At least the Ministry of Energy was honest answering that they knew nothing of this, since it is the Cabinet of Ministers that manages the state shares of “Naftogaz”.

The Ministry of Economic Development (which, in accordance with the Charter, drafts decisions of the Cabinet as the Shareholder of Naftogaz) only indicated that the state has no right to limit the amount of labour remuneration, including bonuses paid in state enterprises.

Given this, it looks like we should be actually grateful for the fact that the bonuses only amounted to 1.3 billion hryvnias instead of 103 billion, for example. I guess that the Ministry of Economic Development, though surprised, would have turned a blind eye even to 103 billion.

Joking apart, the situation must be somehow resolved. And even if the issue of legality of these gigantic bonuses can be resolved within the framework of criminal proceedings launched by the Prosecutor General’s Office, the question of soundness and grounds for such bonuses is purely an economic one. Maybe our Ministry of Economic Development just cannot analyse the theory and practice of calculating bonuses in state-owned companies throughout the world? I hope I am mistaken, and this response of the Ministry of Economic Development is just an unfortunate accident.

Therefore, I am sending another appeal to Mr. Hroisman with one more request for an assessment of the reasonableness of the decision of the Supervisory Board of “Naftogaz” of Ukraine regarding the payment of bonuses to the management of “Naftogaz” in connection with the Company’s victory in the arbitral process.

Viktoriya Vojtsitska
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