On October 1st and 2nd, Georgian (1) and Russian-language Facebook accounts (1, 2, 3) started circulating a video that states that the Cabinet of Ministers of Ukraine is registered in the U.S. registry of private companies, which means that Ukraine is one of the Washington firms. The video also asks how a government institution can register as a private company in the U.S. registry.
The information that the Cabinet of Ministers of Ukraine is a private company registered in the U.S. false. The name of the “Cabinet of Ministers of Ukraine” appears on the website of the SEC because the Minister of Finance of Ukraine was the guarantor of the joint-stock company “Naftogaz of Ukraine” in 2009.
The posts aim to create the impression that the “Cabinet of Ministers of Ukraine” is a private company as long as its name can be found in the “companies” search field in the electronic database of the Securities and Exchange Commission and has been assigned a specific number (CIK 1472775).
Notably, www.sec.gov is the website of the U.S. Securities and Exchange Commission (SEC), which collects various “About the Company” records in an electronic database (EDGAR). However, in English, “company” means not only a private company but also an organization, institution and association. It turns out that this database includes information not only about private companies but also about legal entities in general. Therefore, it is unreasonable to claim that the entities in the registry are U.S. private companies since EDGAR includes information on millions of companies, which increases the efficiency, transparency and fairness of the securities markets.
What are the U.S. Securities and Exchange Commission (SEC) and Central Index Key (CIK)?
The SEC is the U.S. government’s Securities and Exchange Commission, which oversees securities exchanges, securities brokers and dealers, investment advisers and mutual funds to promote fair dealing and provides protection against fraud.
As for the code number (CIK), it is a central index key issued by the United States Securities and Exchange Commission to an individual, entity, or foreign government. A code number is used to identify data in several online databases, including EDGAR. Both foreign and domestic companies must file registration statements and periodic reports electronically through EDGAR. It is also worth noting that this information can be accessed and downloaded for free.
What information do we find on the SEC’s website about the Cabinet of Ministers of Ukraine?
Searching for the words “Cabinet of Ministers of Ukraine” in the files section of the U.S. government’s Securities and Exchange Commission website, the following entry can be found: Cabinet of Ministers of Ukraine (acting on behalf of Ukraine) represented by the Minister of Finance of Ukraine.
Only two documents uploaded in September 2009 (Tender Offer and Appointment of Agent) are available in the files section of the website. In addition, these documents can be opened as well as downloaded.
From the uploaded documents, we learn that the Cabinet of Ministers of Ukraine (in the form of the Minister of Finance of Ukraine) is a representative of the national joint-stock company “Naftogaz of Ukraine.” On the other hand, in order to reduce the refinancing risk, “Ukrainian Naftogaz” offered shareholders to extend the term of existing bonds.
In this case, the Cabinet of Ministers of Ukraine, more precisely, the Minister of Finance of Ukraine, acted as the guarantor, and the national joint-stock company “Ukrainian Naftogaz” acted as the issuer (a person who issues securities in accordance with the law). It should also be noted that “Naftogaz of Ukraine” is a state-owned company subject to Ukraine’s government.
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