The Antimonopoly Committee of Ukraine alerts business entities regarding maximum penalties for the failure to obtain the respective permit while to perform economic concentrations

20.06.2012

Dear clients/colleagues,

Please be informed that on June 18, 2012 the Antimonopoly Committee of Ukraine (hereinafter the "AMCU") circulated the notification stating that lately numerous violations of merger legislation, when business entities perform economic concentrations without obtaining the respective permit, take place.

In this regard, since July 01, 2012 the AMCU will apply maximum punitive sanctions for such legislation violation stated in Clause 12 Article 50 of the Law of Ukraine "On Protection of Economic Competition" (hereinafter the "Law").

In particular, Article 52 of the Law contemplates imposition of fine up to 5% of income (revenue) from sales of products (goods, works, and services) of business entities during the last financial year, prior to the year in which such fine is imposed.

Therefore, in case you/your clients perform any activities on the Ukrainian market, we highly recommend checking if the planed economic concentration requires obtaining the respective prior permit of the Antimonopoly Committee of Ukraine.

For more information please contact Alexey Ivanov at aivanov@konnov.com