The Antimonopoly Committee has fined participants of the tobacco market for the activity. which he had previously allowed, reminds the business community.
The Antimonopoly Committee imposed on tobacco companies to a fine of UAH 3.1 bn for their own decision – permission to concentrate distributors of the tobacco market. This is stated in the statement of the European Business Association.
In the EBA remind, the situation with a fine and court proceedings is a consequence of the structural changes of the market distribution of tobacco products in 2011-2012, approved by the AMC.
“If in this situation, Antimonopoly Committee and can someone fine – except himself. After all, he is in 2011, it issued permits for concentration and concerted actions, which included liabilities distribution not to make wholesale without the permission of “Metropolis” in the next 10 years. Producers weren’t even informed – with a fait accompli with the decision already taken. Companies-distributors, who previously worked with producers just sent letters of termination of cooperation. That is the reason for the penalty is not just unreasonable, it is absurd”, – the expert of the Institute of legislation under the Verkhovna Rada, Professor Valery Vorotin.
The EBA also noted the illegality of the decision of the AMC about the arrest of Bank accounts of participants in the case according to Ukrainian legislation, but also to contradict the Association Agreement with the EU.
“Such steps can be considered as the pressure on international investors will have resulted in a negative effect on the tobacco market as a whole, the fall in budget revenues and the creation of conditions for an unprecedented increase in the smuggling of” – predict in the EBA.
The Association reported that the arrest of accounts may block the work of four international companies, entering the TOP-10 largest taxpayers of Ukraine. Only at the end of 2019 they paid taxes to the budget of 55 billion UAH. And for all the time invested in Ukraine more than 2 billion dollars.
We will note, according to media reports, tobacco companygate submit a claim to arbitration against Ukraine billions of hryvnia, which hit investment and filling the budget of Ukraine in a crisis.
Katrine Johns has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Gal Post, Katrine Johns worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my firstname.lastname@example.org 1-800-268-7128