Friday, November 13, 2015

A package of laws designed to retrofit the protection of business competition adopted by Verkhovna Rada of Ukraine

On November 12, the Verkhovna Rada had the first day titled Economic development and deregulation.Together with MPs, a team of the Ministry of economic development and trade of Ukraine, headed by Minister Aivaras Abromavicius took part in the consideration process.
This day was a result of teamwork of the Government, the MPs and the public. Over 70% of the bills offered by the Ministry were initiated by MPs and NGOs. The parliamentarians voted on 9 economic initiatives. As a result, the Verkhovna Rada approved 2 draft laws of an antimonopoly package as a whole and 1 as a basis. In other blocks 6 draft laws were supported by the MPs in the first reading.

The first bill of the package establishes a clear and understandable method of fixing fines for violation of the law. Before, the Antimonopoly Committee of Ukraine could impose a fine of up to 10% of the annual turnover of the company, which for many companies automatically meant the closure of activity.
The second draft law concerns the transparency of decisions of the Antimonopoly Committee. The third bill raises the threshold for mandatory obtaining permission on concentration. Enterprises with assets worth EUR 8 million won’t be subjected to administrative controls. Now, before merging process, there will be checked only huge concentration between companies with turnover over EUR 100 mn.
Among the bills which were supported in the first reading were the draft act that creates a single automated system of state supervision which enables to track all planned checks for the particular enterprise, imposes strict limitations on the frequency and timing of inspections, reduces the scope of authority of state inspections and introduce additional legal guarantees against unlawful or excessive intervention by the authorities in business activities etc.
The MPs also considered one of the deregulation projects. Namely, there was approved in the first reading the bill which abolishes 6 unnecessary licenses for the export and import of alcohol and alcoholic beverages, tobacco products, and also financial sanctions for failure to submit reports in this area. Another initiative passed in the first reading was the bill which introduces international standards in the management of state unitary enterprises.

"These bills are vital for large international investors coming to the country. The Ministry of Economic Development did everything necessary, together with the deputies, to ensure approval of the antimonopoly block of laws and provide a transparent and fair competition in the market", commented on the decision of the Parliament Aivaras Abromavicius.

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