AMCU likely to acknowledge requirement to serve state enterprises in state banks as anticompetitive
INTERFAX-UKRAINE. Kyiv. April 13
The requirement of the Ministry of Industrial Policy of Ukraine to
transfer the state enterprises under its control to servicing by state
banks has signs of the competition violation. Therefore, the
Antimonopoly Committee of Ukraine (the AMCU) is likely to decide
against the Ministry, Senior Partner of Volkov Koziakov & Partners Sergii Koziakov believes.
"Actually, in interpretation of the Law of Ukraine “On protection of
economic competition” such Ministry’s requirements could be
acknowledged “anticompetitive actions of government bodies," Mr.
Koziakov informed to Interfax-Ukraine, commenting on the Ministry’s
relevant order released on its website.
According to Mr. Koziakov, as defined in the Law “such actions include:
taking any acts (decisions, orders, instructions, regulations, etc.),
issuing written, oral directions, entering agreements, or any other
acts or omissions by bodies of power, bodies of local self-government,
administrative self-control bodies and bodies of administrative
management and control (a collegial body or an official), which have
led or may lead to denial, elimination or distortion of competition”.
"The order stipulates the transfer of accounts to Ukreximbank and
Oschadbank. These banks may benefit the thing that is defined by the
Law as "favour of unlawful advantages in competition". In other words,
as Mr. Koziakov explained, this is the case when a bank attracts
clients as a result of unfair competition and, moreover, under the
order issued by the government body.
In addition, according to him, the situation arises when state
enterprises cannot be serviced by other banks offering, perhaps, rather
better conditions of servicing.
"Analysis of AMCU decision practice gives some cause for hope that in
such situation the committee, most likely, will take a decision against
the Ministry of Industrial Policy,” Mr. Koziakov said.
Reportedly, the Ministry of Industrial Policy in an order No. 160 of
March 30, 2010 demanded that state enterprises belonging to its
administration area to move to servicing by the state banks until April
The Association of Ukrainian Credit-Bank Union (KBS) applied to the
AMCU with a request for rapid measures to stop anticompetitive actions
of bodies of power allowed for by the Ministry’s order.