In these turbulent times businesses face many challenges, including how to reduce costs to maintain a high profit margin. The creation of a purchasing alliance with other companies allows obtaining better purchase prices and other terms due to larger purchase volumes. In Ukraine such purchasing alliances can be created only after obtaining approval for concerted practices from the Antimonopoly Committee of Ukraine (the “AMC”).
This year the AMC, for the first time, approved the creation of a purchasing alliance between local retailers. This successful precedent can encourage other businesses to create purchasing alliances in Ukraine.
For more details of what is needed to obtain the AMC’s approval, please see the article prepared by
Anastasia Usova, a partner at Redcliffe Partners, and Denys Medvediev, an associate, for Ekonomichna Pravda (available in Ukrainian): the link.