Recent research published in the “Scientific Bulletin of Uzhhorod National University. Series Law” examines the constitutional and legal framework governing the National Bank of Ukraine (NBU) and its institutional capacity. Lead author R. P. Naturkach, a candidate of Legal Sciences and Associate Professor at Uzhhorod National University, highlights the importance of strengthening the NBU’s independence to enhance its effectiveness in monetary policy and financial stability.
The study analyzes key legal documents, including the Constitution of Ukraine and the Law on the National Bank, to identify shortcomings and propose improvements. Naturkach emphasizes that “the development of institutional independence is crucial for the NBU to operate effectively and autonomously.” This independence is vital not only for the central bank’s functioning but also for the broader economic environment, including the energy sector.
For energy companies, a stable and independent central bank can lead to a more predictable economic climate. This predictability is essential for investment decisions, particularly in sectors like renewable energy, which often require significant upfront capital. Furthermore, a well-functioning NBU can contribute to a stable currency and controlled inflation, both of which are critical for energy pricing and investment returns.
The research also discusses the role of the NBU’s Audit Committee, established in 2016, which serves as an advisory body to ensure accountability and transparency in the bank’s operations. Naturkach notes that the committee’s formation “reflects the principles of collegiality in decision-making,” which further supports the NBU’s institutional independence.
Naturkach identifies several areas for improvement, including clarifying the powers of the Audit Committee and removing unnecessary restrictions on audits by independent auditors. These changes could enhance the NBU’s governance and operational efficiency, thereby fostering a more conducive environment for commercial activities, including those in the energy sector.
As Ukraine continues to navigate economic challenges, strengthening the institutional capacity of the National Bank could provide the stability needed for sectors like energy to thrive. The insights from this research underscore the interconnectedness of legal frameworks, institutional independence, and commercial opportunities within the energy market, making it a significant area of focus for policymakers and industry stakeholders alike.
