On 17 December 2017, the amendments to the Law of Ukraine “On Protection of Economic Competition” and to the Law of Ukraine “On Sanctions” regarding the effect of economic sanctions on merger control entered into force.
Pursuant to the amendments, if a transaction that constitutes a notifiable concentration is subject to economic sanctions, such concentration is prohibited and will not be cleared by the Antimonopoly Committee of Ukraine (the “AMC”). In particular, if concentration is prohibited under the Law of Ukraine “On Sanctions”, the AMC:
- will reject the merger control application and will not grant merger control clearance for such concentration;
- will close a Phase II investigation without issuing a decision regarding such concentration.
The prohibition of the concentration under the Law of Ukraine “On Sanctions” may also serve as a ground for the courts to change or invalidate AMC’s decision on granting merger control clearance.