**UKRAINE'SANTI-MONOPOLY REGULATIONS CHANGED**

** **

18 JANUARY2000

SOURCE: USEMBASSY KIEV

 

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INTERNATIONALCOPYRIGHT, U.S. AND FOREIGN COMMERCIAL

SERVICE ANDU.S. DEPARTMENT OF STATE, 1999. ALL

RIGHTS RESERVEDOUTSIDE OF THE UNITED STATES.

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1. SUMMARY:AMENDMENTS TO UKRAINE'S NEW ANTI-MONOPOLY

LAW CHANGEDTHE CRITERIA UNDER WHICH THE ESTABLISHMENT

OF A LEGALENTITY, MERGERS, AND ACQUISITIONS MUST BE

APPROVED BYTHE ANTI-MONOPOLY COMMITTEE. IN MOST

CASES, THEREVENUE AMOUNT TRIGGERING COMMITTEE

OVERSIGHT WASRAISED FROM USD 600,000 TO USD ONE

MILLION.  END SUMMARY.       .

 

2. UKRAINE'SOLD ANTI-MONOPOLY LAW REQUIRED THAT THE

ESTABLISHMENTOF A LEGAL ENTITY, MERGERS, AND

ACQUISITIONSBE APPROVED BY THE ANTI-MONOPOLY

COMMITTEE IFTHE INVESTMENT FULFILLED CERTAIN CRITERIA

(E.G.ACQUIRING A CERTAIN PERCENTAGE OF THE VOTING

RIGHTS IN ANENTERPRISE, OR WHEN COMBINED ASSETS

EXCEEDED AFIXED AMOUNT). HOWEVER, THE THRESHOLD WAS

SET SO LOWTHAT NEARLY ALL EQUITY INVESTMENTS, JOINT

VENTURES WITHMULTIPLE PARTICIPANTS, AND SHARE

ACQUISITIONSREQUIRED ANTI-MONOPOLY COMMITTEE

APPROVAL.CABINET OF MINISTERS RESOLUTION NUMBER 2121

OF NOVEMBER22, 1999 ATTEMPTED TO IMPROVE THE

SITUATION BYRAISING THE BAR (SOMEWHAT). UNDER THE

PREVIOUSRESOLUTION, WHICH WAS ADOPTED ON NOVEMBER 11,

1994, ANDAMENDED ON MAY 26, 1997, THE ANTI-MONOPOLY

COMMITTEE WASRESPONSIBLE FOR MONITORING THE

RESTRUCTURINGOF ALL ENTERPRISES WITH SALES IN EXCESS

OF USD600,000.  THE NEW RESOLUTIONREQUIRES THE ANTI-

MONOPOLYCOMMITTEE TO APPROVE THE CREATION OF FIRMS BY

TWO OR MOREFOUNDERS ONLY IF THE COMBINED ASSETS OF

THE FOUNDERSOR COMBINED SALES VOLUMES EXCEED USD 12

MILLION, ORIF TWO OF THE FOUNDERS HAVE ASSETS OR

SALES OVERUSD ONE MILLION (PREVIOUSLY USD 600,000).

 

3. THEANTI-MONOPOLY COMMITTEE MUST ALSO APPROVE THE

SALE OFCOMPANIES WITH COMBINED ASSETS THAT EXCEED USD

ONE MILLION(PREVIOUSLY USD 600,000).

 

4. THEANTI-MONOPOLY COMMITTEE MUST NOW APPROVE THE

SALE OFCOMPANIES IN WHICH THE GOVERNMENT HOLDS OVER

50 PERCENT OFTHE SHARES, IF THE ASSETS OF SUCH A

COMPANY WEREVALUED AT OVER USD ONE MILLION

(PREVIOUSLYUSD 600,000) AT THE END OF THE ACCOUNTING

YEAR.  THE EXCEPTION IS WHEN A CIVIL OR ARBITRATION

COURT ORDERSLIQUIDATION.

 

5. THEANTI-MONOPOLY COMMITTEE MUST APPROVE THE LEASE

OF PROPERTYIF THE COMBINED VALUE OF THE ASSETS OF THE

ENTERPRISESOR THE COMBINED SALES VOLUME OF THE

FACILITIESBEING LEASED EXCEED USD ONE MILLION

(PREVIOUSLYUSD 600,000).

 

6. THECOMMITTEE'S APPROVAL IS ALSO REQUIRED TO MERGE

FIRMS OFWHICH THE COMBINED VALUE OR COMBINED SALES

VOLUMESEXCEED USD 12 MILLION, (PREVIOUSLY USD SIX

MILLION), OR,IF THE ENTERPRISES BEING MERGED HAVE

ASSETS ORSALES VOLUMES THAT EXCEED USD ONE MILLION

(PREVIOUSLYUSD 600 MILLION).

 

7. THECABINET OF MINISTER'S RESOLUTION ALSO LIMITED

THECONDITIONS BY WHICH THE ANTI-MONOPOLY COMMITTEE

WOULDREGULATE THE PURCHASE OF MORE THAN 25 PERCENT OF

THE VOTINGRIGHTS IN AN ENTERPRISE. THE RESOLUTION

REQUIRES THEANTI-MONOPOLY COMMITTEE'S CONSENT FOR THE

PURCHASE ORTRANSFER OF SHARES ONLY IF THE VALUE OF

THE ASSETS OFTHE BUYER OR ITS SALES VOLUME EXCEED USD

12MILLION.  THIS LAW ALSO COMES INTOPLAY WHEN THE

VALUE OF THEASSETS OR SALES VOLUMES OF THE BUYER OR

THE FIRM OFWHICH THE SHARES ARE BEING ACQUIRED EXCEED

USD ONEMILLION (PREVIOUSLY USD 100,000).

 

8.ESTABLISHING A SELF-REGULATING ORGANIZATION FOR

THESECURITIES MARKET OR RESTRICTING COMPETITION

BETWEEN THEFOUNDERS IS NOT SUBJECT TO ANTI-MONOPOLY

COMMITTEEPERMISSION.

 

9. FORDETAILED INFORMATION ON THE GOVERNMENT OF

UKRAINE'SANTI-MONOPOLY REGULATIONS, PLEASE CONTACT

YOUR NEARESTUSDOC EXPORT ASSISTANCE CENTER, WITH A

COPY TO:DAVID HUNTER, CS KIEV SENIOR COMMERCIAL

OFFICER; OROLENA STEPHANSKA, CS COMMERCIAL

SPECIALIST:

 

THECOMMERCIALSERVICE, U.S. EMBASSY KIEV

7 KUDRIAVSYUZVIZ, KIEV 04053, UKRAINE

TEL: (380-44)417-143, 417-2669

FAX: (380-44)417-1419

E-MAIL:[email protected]