Investors looking to invest in Ukraine will find it useful to be aware of Ukrainian antimonopoly regulations requiring businesses to apply for the approval of the Antimonopoly Committee (AMC) of Ukraine prior to Ukrainian joint venture company formation, merger or acquisition. AMC approval is required (amongst others) where:

- the aggregate value of assets or sales of at least two founders of a newly formed Ukrainian company exceeds the equivalent of US $2 mln, and the individual value of assets or sales of at least two founders is in excess of the equivalent of US $100,000; or

- the aggregate market share of a newly-formed Ukrainian company's founders exceeds 35% of a specific Ukrainian market; or

- the market share of the company being formed is certain to exceed 35% of a specific Ukrainian market; or

for mergers of two or more Ukrainian companies:

- one party to the merger is a recognised monopoly; or

- neither party to the merger is a recognised monopoly but the aggregate value of their assets or sales exceeds the equivalent of US $1 mln with at least two participating entities owning assets or having sales worth the equivalent of at least US $100,000 each.

Note: all sales/assets figures above refer to the Ukrainian market/Ukrainian companies respectively.

In addition, AMC approval is required to proceed with exceeding any of the thresholds (once or progressively) of 10%, 25%, 33% or 50% in regard to acquisition (either directly or indirectly) of voting shares of a Ukrainian company. Acquisition of shares of a Ukrainian company which is a recognised monopoly requires AMC approval regardless of the value of the shares to be purchased. Where shares are purchased through privatisation auction or stock exchange the investor is required to notify the AMC of the deal within a month of the purchase date. (Resolution of the Antimonopoly Committee of Ukraine No 15 of 9 December 1994)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information contact Andy Kusytsch on (380) 44 244 5478/9 or enter a text search 'Coopers & Lybrand' and 'Business Monitor'.