You're reading: Parliament dismisses bill targeting oligarchs

The Verkhovna Rada today refused to consider a bill aimed at reducing the clout of the country’s oligarchs, adding more fuel to the fiery debate over Privat Group owner Ihor Kolomoisky’s influence on the People’s Front party and other parliamentarians.

The legislation was
submitted as an alternative to a similar bill, approved by the Rada on Jan. 13,
that has been criticized as ineffective and counterproductive for business.

The approved bill would
reduce the percentage of shares that needs to be represented at a
state-controlled joint-stock company’s shareholder meeting before a quorum is
reached.

Currently the percentage is
set at 60 percent, and Kolomoisky has been able to block reform, profit
redistribution and changes in ownership at companies such as oil and gas
producer Ukrnafta, simply by not turning up to a shareholder meeting, as
Kolomoisky’s Privat group holds a 42 percent stake and state-owned oil and gas
giant Naftogaz owns 58 percent.

By reducing the percentage
the bill aims to allow the government to make changes without Kolomoisky’s
involvement.

That bill, sponsored by
Radical Party leader Oleh Lyashko, seeks to immediately reduce that percentage
to 50 percent plus one share. Starting from January 1, 2016, all joint-stock
companies would also be subject to the new rules.

However, critics say the
original bill would not affect Kolomoisky’s control of Ukrnafta until 2016, as
the government does not have a direct share in the company, controlling it
indirectly through Naftogaz. They fear this provision gives Kolomoisky time to
adapt to the new rules and find a way out.

The second bill, on the
other hand, specifies immediately introducing the 50 percent + 1 rule for
companies the government controls directly or indirectly.

Prime Minister Arseniy
Yatsenyuk’s People’s Front party, most of whom did not support the previous
bill, also refused to consider the new bill, according to Samopomich
parliamentarian Viktoria Voitsytska, who co-sponsored the draft. She
accused the People’s Front party of serving Kolomoisky.

 “They again
demonstrated whose interests they support,” Voitsytska told the Kyiv Post.

The People’s Front party
rejected the allegations and today Yatsenyuk announced the government would
hold a Ukrnafta shareholder meeting and seek a change in ownership.

However, Voitsytska added
that there was a good chance the new bill would now be considered in early
February, when more parliamentarians would be present.

Journalist Serhiy
Leshchenko, a parliamentarian representing the Petro Poroshenko Bloc, said on
Facebook that 204 of the Verkhovna Rada’s 419 members supported considering the
legislation on Jan. 16.

Kyiv Post staff writer
Oleg Sukhov can be reached at [email protected]
.