The EBA Discussed Business Rights Protection with AMCU and ARMA

02/ 09/ 2024

On August 30th, an Extended Meeting of the Regulatory Committee of the Association was held on the topic Protecting the Rights and Interests of Ukrainian Businesses During the War. The meeting was attended by Olena Duma, Head of the Asset Recovery and Management Agency (ARMA), and Serhiy Shershun, State Commissioner of the Antimonopoly Committee of Ukraine (AMCU). Representatives of state agencies shared updates on their work in the context of supporting Ukrainian enterprises, protecting fair competition, preventing market monopolization, and countering unlawful actions by government bodies. The number of challenges for businesses in Ukraine today is colossal. Despite this, we see that many companies and investors, particularly those who made significant investments before the full-scale invasion, continue to invest in maintaining operations. Therefore, in the context of supporting companies and future recovery processes, protecting investors interests and ensuring fair competition are very important, emphasized Svitlana Mykhailovska, Deputy Director of the Association. Olena Duma, Head of ARMA, discussed the agencys recent developments, including the launch of the Unified State Register of Seized Assets, which currently contains about 312,000 records of seized property in criminal proceedings, with 72,000 of these assets transferred to ARMA management. Additionally, transparent rules for selecting asset managers and appraisers have been introduced, as well as procedures for asset sales, including abroad. ARMA is the only state body authorized to purchase military bonds, and to date, it has acquired government bonds worth 5.5 billion UAH and 31 million USD. These funds not only go directly to the Armed Forces of Ukraine but also work effectively for the state budget. The total income from government bonds in UAH is about 600 million UAH, and from foreign currency bonds, it amounted to 700,000 USD in one month. The Head of ARMA emphasized that the unprecedented number of seized assets requires managers and urged business representatives to participate in competitive procedures. The agency has initiated amendments to the law to unblock corporate rights management and increase the effectiveness of their administration. Improvements to the Register are also being proposed. Serhiy Shershun, State Commissioner of the AMCU, shared the results of the first stage of the reform of Ukraines competition legislation. The first stage of the reform has already led to a significant alignment of Ukrainian legislation with European standards and the introduction of new tools for investigations. Among the innovations of interest to businesses is that from now on, the AMCU must obtain a court order to conduct inspections. The second stage of the reform of Ukraines competition legislation will include further harmonization of economic competition protection laws with European Union law, including enhancing procedural fairness, expanding the existing list of guarantees for fundamental rights protection of the parties involved, which will contribute to a comprehensive case review and effective cessation of competition violations. During the discussion, Mr. Shershun also noted that one of the effective ways to counteract the abuse of monopoly power in markets is to eliminate barriers to market entry, which the AMCU continues to work on. In the context of countering anti-competitive actions by government bodies, the AMCU has made over 170 decisions in the past year to stop such anti-competitive actions/inaction (related to granting undue advantages to certain companies, non-competitive selection of market operators, etc.). The AMCU is also focused on addressing business complaints regarding the protection of business reputation and the cessation of unfair competition practices. The Association thanks the speakers and participants for their active discussion!

On August 30th, an Extended Meeting of the Regulatory Committee of the Association was held on the topic “Protecting the Rights and Interests of Ukrainian Businesses During the War.” The meeting was attended by Olena Duma, Head of the Asset Recovery and Management Agency (ARMA), and Serhiy Shershun, State Commissioner of the Antimonopoly Committee of Ukraine (AMCU).

Representatives of state agencies shared updates on their work in the context of supporting Ukrainian enterprises, protecting fair competition, preventing market monopolization, and countering unlawful actions by government bodies.

“The number of challenges for businesses in Ukraine today is colossal. Despite this, we see that many companies and investors, particularly those who made significant investments before the full-scale invasion, continue to invest in maintaining operations. Therefore, in the context of supporting companies and future recovery processes, protecting investors’ interests and ensuring fair competition are very important,” emphasized Svitlana Mykhailovska, Deputy Director of the Association.

Olena Duma, Head of ARMA, discussed the agency’s recent developments, including the launch of the Unified State Register of Seized Assets, which currently contains about 312,000 records of seized property in criminal proceedings, with 72,000 of these assets transferred to ARMA management. Additionally, transparent rules for selecting asset managers and appraisers have been introduced, as well as procedures for asset sales, including abroad. ARMA is the only state body authorized to purchase military bonds, and to date, it has acquired government bonds worth 5.5 billion UAH and 31 million USD. These funds not only go directly to the Armed Forces of Ukraine but also work effectively for the state budget. The total income from government bonds in UAH is about 600 million UAH, and from foreign currency bonds, it amounted to 700,000 USD in one month.

The Head of ARMA emphasized that the unprecedented number of seized assets requires managers and urged business representatives to participate in competitive procedures. The agency has initiated amendments to the law to unblock corporate rights management and increase the effectiveness of their administration. Improvements to the Register are also being proposed.

Serhiy Shershun, State Commissioner of the AMCU, shared the results of the first stage of the reform of Ukraine’s competition legislation. The first stage of the reform has already led to a significant alignment of Ukrainian legislation with European standards and the introduction of new tools for investigations. Among the innovations of interest to businesses is that from now on, the AMCU must obtain a court order to conduct inspections. The second stage of the reform of Ukraine’s competition legislation will include further harmonization of economic competition protection laws with European Union law, including enhancing procedural fairness, expanding the existing list of guarantees for fundamental rights protection of the parties involved, which will contribute to a comprehensive case review and effective cessation of competition violations.

During the discussion, Mr. Shershun also noted that one of the effective ways to counteract the abuse of monopoly power in markets is to eliminate barriers to market entry, which the AMCU continues to work on. In the context of countering anti-competitive actions by government bodies, the AMCU has made over 170 decisions in the past year to stop such anti-competitive actions/inaction (related to granting undue advantages to certain companies, non-competitive selection of market operators, etc.). The AMCU is also focused on addressing business complaints regarding the protection of business reputation and the cessation of unfair competition practices.

The Association thanks the speakers and participants for their active discussion!