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Ministry of Economic Development and Trade of Ukraine opens the call for CEOs at 6 large state-owned enterprises

Ministry of Economic Development and Trade of Ukraine begins an official selection procedure  for CEO positions of PJSC Ukrzaliznytsia, PJSC Centerenergo, SE Ukrposhta, SE Ukrspyrt, SE Plant Electrovazhmash and SE Ukrenergo.

The ministry is seeking highly-skilled professional managers with excellent reputation and successful work experience within the private sector. Winners of the selection procedure will receive a competitive remuneration comparable to the private-sector compensation in Ukraine.

The criteria for CEO selection, the description of positions and a list of required documents and  deadlines to submit the application may be found here or at MEDT web-site’s vacancies section via the link. Please, note that the list of necessary documents was reduced: penal clearance certificate is not required anymore.

The selection will proceed in 2 phases. In the first phase, a selection commission under the  Nomination Committee will shortlist 2-5 candidates, while in the second phase, the Nomination Committee will select the most qualified nominee and recommend him/her to be appointed by the Cabinet of Ministers of Ukraine (CMU) as a CEO of the enterprise.

The Nomination Committee consists of 5 Ministers and 5 independent experts. Detailed information on the Nomination Committee and its members could be found here.

Additional information on the companies

PJSC Ukrzaliznytsia (UZ) is state-owned rail monopoly which operates 6 regional rail
operators and close to 140 other subsidiaries. The domestic rail network is Ukraine’s strategic asset and a key transport link between the EU and Russia and Central Asia (4 out of 10 pan-European transport corridors cross Ukraine). UZ operates 21,600 km of rail tracks (47 % electrified) and a fleet of c. 4,000 locomotives and 123,000 railcars. It accounts for c. 60 % of total freight transportation and 38 % of passenger transportation in Ukraine, ranking first in Europe (ex-Russia) on freight turnover. UZ is number 2 by passenger turnover in the CIS and nember 4 in Europe. Metal and mining goods accounted for 58 % of its 2014 freight transportation in volume terms, followed by construction materials (15 %) and grain (8 %). With over 300,000 employees, UZ is one of the largest employers in Ukraine. Company reported net revenue of UAH 28.9bn for 6m2015 (+23% y-o-y). Company’s net loss narrowed to UAH 4,7bn in 6m2015 vs. net loss of UAH 8.2bn for the same period of 2014. 

PJSC Centerenergo is one of the TOP-100 largest SOEs in Ukraine managed by the Ministry of Energy and Coal Industry of Ukraine. Centrenergo is Ukraine’s second-largest thermal generator by capacity (7,660 MW), operating three power plants in the industrialised regions of Kyiv, Kharkiv and Donetsk. In 2014 it accounted for 7 % of the total electricity production in Ukraine (18 % of the total production by thermal power generation). For 9m 2015 company generated UAH 82m of net loss compared with net income of UAH 219m for 9m 2014. 

SE Ukrposhta is governed by the Ministry of Infrastructure of Ukraine and is one of the TOP-100 largest SOEs in the country. SE Ukrposhta is a national postal operator of Ukraine, which is wholly owned by the State. The enterprise has 29 branches (inc. 25 regional directorates) and more than 11 800 postal departments all over the country, which makes it the largest postal network in Ukraine. With over 87 000 employees, Ukrposhta processes and delivers to customers about 240 million postal items, 16 million parcels and insured items, 15 million orders, and more than 83 million pensions per annum. For 9m 2015 net income increased 2,5 times compared to 9m 2014 and amounts UAH 30m.

SE Plant Electrovazhmash is governed by the Ministry of Economic Development and Trade of Ukraine and is one of the TOP-100 largest SOEs in the country. The company produces hauling equipment for mines and railways as well as turbo and hydro generators and direct-current electric machinery. EVM’s equipment is used in over 40 countries globally. 73% of thermal power stations in Ukraine is equipped with Electrovazhmash turbo generators and 78% of hydro power stations use hydro generators produced by Electrovazhmash. The enterprise supplies Europe, Asia, Latin America and Middle East markets. Partners of the enterprise are Siemens, ArcelorMittal and others. For 9m 2015 company amounts UAH 53m of net loss and for 9m 2014 company reported about UAH 84m of net income. 

SE Ukrspyrt is a 100% state-owned holding company operating 41 domestic distilleries with total annual capacity of 31.3 million decalitres, located in Lviv, Ternopil, Vinnytsia and other regions. Being a state monopoly in production and export of ethyl alcohol, Ukrspyrt is responsible for the implementation of government policy and effective management of state-owned companies in the alcoholic beverage industry. The company has approx. 5 thousand employees, being the main employer in villages and towns where its production facilities are located. Ukrspyrt reported net income of UAH 164m in 9m2015 (+71% y-o-y).

SE Ukrenergo is governed by the Ministry of Energy and Coal Industry of Ukraine and is one of the TOP-100 largest SOEs in Ukraine. The enterprise is responsible for operating the domestic high voltage transmission system and cross-border transmission lines and providing power dispatching services. It controls real-time electricity output and monitors power generators’ operational generating units, fuel stocks and production efficiency, balancing electricity consumption with production. Due to its status as natural monopoly, tariffs for the company are set by the sector regulator, which uses a cost-plus approach to set tariffs based on its OPEX and CAPEX needs. Ukrenergo unites seven regional networks and operates 23,000 km of transmission lines operating at 220-750 kV voltage levels. The company regularly conducts cross-border capacity auctions and sells rights to export electricity from Ukraine to neighboring countries. For 9m 2015 Ukrenergo generated UAH 408m of net income comparing with net loss of UAH 478m for 9m 2014.

Additional information about enterprises may be found in Annual Report on TOP-100 SOEs for 9m 2015 here.

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