This year, Burisma Holdings was ranked first in reputation management rating among private gas producers. New projects in Ukraine and abroad, an increase in natural gas production up to 1.2 billion cubic meters and the purchase of “KUB-Gas” transformed the company into a global group with interests located on three continents.
The Advisor to the Board of Directors at Burisma Holdings Vadym Pozharskyi talked to “Business” about the company’s strategy and reputation management differences in Ukraine and abroad.
– How did you build a global brand in such a short time?
– If you look at the history of our company, it is clear that for a long time, we have been investing into the company’s development. Today, the situation is no different from what it used to be: we are investing in the development of the industry substantially more than other companies are.
We have best personnel and most technological equipment, which allows us to drill 2900 m deep wells within just three weeks. Innovative methods of horizontal drilling used in more than 50% of wells in complex geological conditions make Burisma a desired partner on big projects. We are already bringing our expertise, services and drilling technology to international markets. In addition, there are also fundamental principles that work as filters when it comes to reputation. For example, we pay taxes here and now; we continually invest in Ukraine, despite macroeconomic and political risks; we are a technology company that uses innovative methods in natural gas production.
By making the industry global, Burisma develops the Ukrainian economy. This approach allows us to be constantly open to change.
– What factors shape your reputation in Ukraine and abroad?
– In Ukraine, it is primarily social responsibility. In 2015, Burisma group paid circa USD 3 billion in taxes. According to this indicator, we are one of the leading industrial taxpayers in the country. It speaks of our social orientation and compliance with best international corporate practices. The management of human resources is equally important to us.
The company helps its employees grow and develop, mastering latest technology and best equipment together with European and US specialists. We are not losing personnel, all of our employees want to grow and develop within the company. In Europe, the company has launched a global initiative in support of developing environmentally friendly and safe electricity from renewable sources. With that purpose, we have founded Burisma Geothermal. This is only the first element in our new strategy. We have made a clear choice on where we are going and our responsibility towards future generations.
– The purchase of “KUB-Gas” is the first deal on national gas market over the past two years. How did it affect your reputational capital?
– Basically, we are focused on creating a non-volatile state and developing domestic gas market. The purchase of shares from Serinus Energy, a public company with dual listing in Warsaw and Toronto was the first public transaction on Ukrainian gas market over the past two years.
In a way, this is a signal to foreign investors that Ukrainian gas market is open and transparent. It is possible and necessary to invest here, and we encourage other players to do so.
By setting certain standards, we want our colleagues to conclude such transactions as well, forming a civilized and transparent market in Ukraine. We continue to cooperate with Cub Energy, a public company with listing in Canada that shares our principles and values.
We gladly take responsibility for the industry and the country, while continuing to invest in the Ukrainian gas production, even when global players are leaving Ukraine. This is the main component of our image.