Category: Ukraine

On 26 July 2024, the National Energy and Utilities Regulatory Commission (NEURC) adopted Resolution 1381, amending key provisions of the following agreements:

• Agreement for the purchase and sale of electricity under the “green” tariff
• Agreement on the provision of services to support electricity production from alternative sources under the market premium mechanism
• Agreement on participation in the balancing group of the Guaranteed buyer
• Procedure for purchasing electricity generated from renewable energy sources by the Guaranteed buyer

Producers should until 1 October 2024 align their agreements with the adopted amendments.

The new form of the additional agreements can be downloaded from the Guaranteed buyer’s website:

• Link to the forms for the additional agreements to the agreement for the purchase and sale of electricity under the “green” tariff and agreement on participation in the balancing group of the Guaranteed buyer
• Link to the form for the additional agreement to the agreement on the provision of services to support electricity production from alternative sources under the market premium mechanism

The adopted amendments address two main areas:

1. Penalty amounts for failure to meet monetary obligations under the agreements
2. Introduction of conditions for guarantees of origin

Regarding penalties

Changes to the application of penalties have been made to all three of the agreements mentioned above.

Under the previous version of these agreements, the following penalties were stipulated for the Guaranteed buyer in the event of late or incomplete payments for electricity:

• a payment penalty of 0.1% for each day of delay
• a penalty of 7% for failure to pay the producer for more than 30 days

The agreement on participation in the balancing group of the Guaranteed buyer contains corresponding provisions, applying penalties to RES producers if they miss payment deadlines for their share of the cost of settling electricity imbalances with the Guaranteed buyer.

According to the NEURC’s amendments, the penalty that may be imposed on both the Guaranteed buyer and RES producers is now set at 1% of the unpaid amount, replacing the previous rate of 7%.

However, according to NEURC Resolution No. 332 dated 25 February 2022, the accrual and collection of penalties under contracts concluded under the Law of Ukraine “On the Electricity Market” have been suspended for the duration of martial law in Ukraine and 30 days following its termination.

Regarding Guarantees of Origin

Amendments regarding guarantees of origin have been incorporated into the following agreements:

• Agreement for the purchase and sale of electricity under the “green” tariff
• Agreement on the provision of services to support electricity production from alternative sources under the market premium mechanism
• Agreement on participation in the balancing group of the guaranteed buyer

The amendments expanded the range of obligations of RES producers, requiring them to obtain monthly guarantees of electricity origin from the register and transfer them to the Guaranteed buyer. Additionally, the amendments stipulate that RES producers should acquire user status in the register of guarantees of origin and register their installations in accordance with procedures established by the Government and the NEURC.

If these obligations are not met, the Guaranteed buyer excludes the seller’s generating units from the balancing group, and the agreements are suspended until the RES producer complies with these requirements.

Furthermore, the formula for calculating the cost of services to support electricity production from alternative sources has been revised. The cost of these services will be reduced by the total payments related to income from the sale of guarantees of electricity origin.

By Yaroslav Petrov, Partner, and Kateryna Andarak, Associate, Asters

Fairsquare has launched an office in Kyiv, focusing on providing advice and assistance to clients regarding their expansion into the Ukrainian market. The office will be headed by Ihor Mazurenko.

According to the firm, Mazurenko’s expertise “primarily lies in litigation in the areas of civil, commercial, and criminal law, including experience in commercial law and comprehensive company formation and ownership structures; the firm also provides services in the areas of commercial, civil, administrative, labor and family law, as well as debt collection and protection of intellectual property rights.”

“The goal of opening a representation in Kyiv is to extend the provision of our legal services and support the expected gradual expansion of clients into the Ukrainian market,” explained Founder and Partner Erik Schwarcz. “Ukraine will sooner or later undergo massive reconstruction and gradual recovery. This fact will certainly stimulate the interest of Central European companies in this market and their participation in it. We want to be prepared for this in the interest of our clients, and we are already registering a number of inquiries and questions from our clients in Slovakia, the Czech Republic, and Austria regarding the Ukrainian market.”

“After the outbreak of the invasion, many companies in Ukraine suspended their procedural activities,” added Mazurenko. “However, now, several international corporations are resuming their activities. For example, McDonald’s, H&M, Jysk, LPP, and Samsung have already done so.” Now that Ukraine has become a candidate for EU membership, according to him, it is necessary to develop relationships not only between governments but also at the entrepreneurial level. “Our cooperation can be a small brick in laying the foundations for building Ukraine as part of the European family.”

On August 13, 2024, the CMU adopted Resolution N 756-р On some issues related to the contest for the construction of generating capacity and the implementation of demand-side management measures (the “Contest Conditions Resolution”) setting forth the following conditions for the construction of generating capacity:

• Term for submitting applications – 6 months after official publication
• Minimal installed capacity of a power plant – 5 MW
• Maximum installed capacity of a power plant – 80 MW
• Total volume of high maneuverable generating capacity to be built – 700 MW
• Maximum deadline for construction – December 2027
• Minimum guaranteed (design) service life of the generating unit equipment – at least 20 years (or 100,000 hours in generation mode)
• Maximum price of procurement – €854977,5 per MW and minimum term for the price payment – 10 years.

The new capacities should meet, inter alia, the following, technical requirements:

• The plants should comply with the technical requirements set out in the Transmission System Code for the connection of such installations and the requirements of environmental protection legislation.
• Highly maneuverable power plants with fast start/stop should be able to start and stop in normal mode at least four times in one day and/or up to eight times in one day in certain cases, if necessary, to ensure start and stop with a maximum permissible downtime between two consecutive start/stop cycles of 15 minutes, a total of 1800 – 2000 starts per year.
• The control range should be at least 80 percent of the installed capacity.
• The time of commissioning (full activation) from the stopped state should be no more than 15 minutes from the moment of receiving the corresponding command from the transmission system operator.
• The guaranteed continuous operation time must be not less than eight hours.
• Generating units must be able to start up in the absence of voltage in the external grid.
• The generating capacity must be ready for operation after a significant downtime of up to one month without any maintenance.
• The generating unit must be equipped with a conservation system.
• The generating unit must be able to operate on both the main and backup or emergency fuels, if necessary.
• The construction of the generating capacity should include the construction of engineering and technical protection of the equipment.

As per Resolution of the CMU dated July 10, 2019 N 677 On Approval of the Procedure for Holding a Contest for the Construction of Generating Capacity and Implementation of Demand Management Measures (the “Contest Procedure Resolution”), the following key steps should be taken:

• The Ministry of Energy of Ukraine should form a contest committee within 30 calendar days of the date of the Contest Conditions Resolution.
• PrJSC NPC Ukrenergo, as the transmission system operator, must develop the contest documentation and submit it for the approval of the contest committee within two months of the date of the Contest Conditions Resolution.
• The contest documentation shall be officially published (in both English and Ukrainian versions) within5 calendar days from the date of its approval.

Contest documentation may not change any of the conditions/requirements established in the Contest Conditions Resolution but may provide for additional requirements for the developers and proposals, such as:

• Qualification requirements for the participant (experience of constructing similar projects, financial statements, information on the model for financing the project etc.)
• Qualification requirements for the proposal (technical parameters of equipment, deadline for commissioning the project, minimal guaranteed term of operation, minimal term for payment of the fee for developing the project)
• Requirements for the guaranteed security for the price proposal (to participate in the auction the participant should submit the guaranteed security in the amount of €100 000 plus €1 000 per MW of the proposed capacity, and the winner should provide guaranteed security in the amount of €30 000 per MW of the proposed capacity)
• Requirements for the contest proposal
• Information on incentives to be provided for the winner
• Criteria for selecting the winner
• Draft agreement with a contest winner

In order to participate in the contest, each participant should provide:

• Confirmation of the land rights, if necessary for the implementation of a proposal
• Prepared documentation as per the requirements of the contest documentation.

Please note that the contest set out in the Contest Conditions Resolution is an additional incentive for the deployment of high maneuverable generation, separate from the special auctions for ancillary services run by PrJSC NPC Ukrenergo in August 2024 (99 MW of FCR capacities were auctioned on August 15, 2024 and 1 GW of FRR capacities to be auctioned on August 22, 2024).

This information does not constitute legal advice and is merely the opinion of the author.

By Maksym Sysoiev, Partner, Dentons

Hillmont Partners and Avellum have successfully represented GNT Group’s creditors and have stopped an attempted corporate raid.

According to Hillmont Partners, “the Anti-Raider Office of the Ministry of Justice of Ukraine has satisfied the complaint filed by Hillmont Partners on behalf of its client, Madison Pacific Trust Limited. Madison Pacific Trust Limited represents the US lender Argentem Creek. The complaint requested the cancellation of an illegal registration action to change the manager of Olympex Coupe International. In May 2024, the state registrar performed a registration action whereby the company’s manager was replaced with a person close to the former owners of GNT Group. This registration contradicted the Decision of the Western Economic Court of Appeal issued in April 2024 to appoint the insolvency receiver as the manager of Olympex Coupe International.”

The Hillmont Partners team included Senior Partners Valentyn Zasukha and Andrii Nyzhnyi, Counsel Oleksii Miagkyi, Senior Associate Bohdan Novyk

The Avellum team included Senior Partner Kostiantyn Likarchuk, Partner Vadim Medvedev, Managing Associate Oleksandra Serova, and Senior Associate Kristina Mysenko.

A summary of recent legislative developments in the fields of energy and natural resources in Ukraine.

Electricity

• Recalculation of “Green” Tariffs
• Amendments to the Resolution on Stable Functioning of the Electricity Market
• Amendments to the Regulation of the Register of Electricity Facilities and Electrical Installations
• State Support for the Installation of Generating Facilities
• Amendments to the Resolution on Temporary Connection of Electrical Installations
• Changes to the regulation of the guaranteed buyer

Gas/Oil

• Amendments to the Methodology for Calculating the Tariff for Natural Gas Distribution Services
• Amendments to the Reporting Forms on Tariffs for Gas Storage Services

Licensing

• Amendments to the Procedure for Monitoring Licensees’ Compliance with Legislation

Regulation of information and reporting

• Introduction of a Test Regime for Disclosure of Insider Information
• Amendments to the Reporting Rules
• Improvement of the Report Review Process
  Protection of Restricted Information
• Changes to the regulation of the Guaranteed Buyer

Other

• Amendments to the Procedure for Determining the Amount of Fines
• Exemption from Taxation of Imports of Goods for the Energy Sector
• Agreement for Participation in Special Auctions Published

Electricity

1. Recalculation of “green” tariffs | On 28 June 2024, the NEURC recalculated the “green” tariffs because the average official exchange rate of UAH to EUR for the period from 29 May 2024 to 27 June 2024 was UAH 4364.6663 per EUR 100, and adopted the following resolutions:

• on the establishment of “green” tariffs for electricity and a surcharge to the “green” tariffs for compliance with the level of use of Ukrainian-made equipment for business entities
• on the establishment of “green” tariffs for electricity produced by generating facilities of consumers, including energy cooperatives, with an installed capacity of less than 150 kW
• on the establishment of “green” tariffs for electricity produced by generating facilities of private households.

2. Amendments to the Resolution on Stable Functioning of the Electricity Market | On 28 June 2024, the NEURC adopted amendments to the Resolution on ensuring the stable functioning of the electricity market, including the financial position of electricity market participants for the period of martial law in Ukraine. The amendments are necessary to ensure that market participants can avoid transactions that result in a negative balance of more than 1 MWh for the billing period.
3. Amendments to the regulation of the Register of Electricity Facilities and Electrical Installations | On 3 July 2024, the NEURC adopted amendments to Resolution No. 2624 to ensure the quality and completeness of data in the Register of Electricity Facilities and Electrical Installations of Consumers Using Alternative Energy Sources.
4. State support for the installation of generating facilities | On 3 July 2024, the Cabinet of Ministers of Ukraine adopted amendments to the Procedure for Providing Financial State Support to Individuals who install generating facilities generating electricity from alternative energy sources in their households.
5. Amendments to the Resolution on Temporary Connection of Electrical Installations | On 10 July 2024, the NEURC adopted amendments to the Resolution on Peculiarities of Temporary Connection of Electrical Installations to the Distribution System during the Period of Martial Law in Ukraine, which:

• introduce a mechanism for additional control during the procedures for connecting new generating capacities
• define the requirements for project documentation
• clarify the form of information submission for providing temporary connection services.

6. Changes to the regulation of the Guaranteed Buyer | On 26 July, the NEURC adopted amendments to Resolution No. 641, which provide for:

• approval of individual agreements on increasing the share of electricity production from alternative sources
• reduction of the cost of support for the production of electricity from alternative sources by the amount of income from the sale of guarantees of origin
• clarification of the provisions of standard contracts for the transfer of guarantees of origin and reduction of penalties for late payments from 7% to 1%

Gas/Oil

1. Amendments to the Methodology for Calculating the Tariff for Natural Gas Distribution Services | On 10 July 2024, the NEURC adopted amendments to the Methodology for Determining and Calculating the Tariff for Natural Gas Distribution Services to determine the specifics of setting and reviewing tariffs for natural gas distribution services during the martial law in Ukraine and six months after the month in which martial law is terminated or cancelled.
2. Amendments to the reporting forms on tariffs for gas storage services | On 10 July 2024, the NEURC adopted amendments to the annexes to the reporting form on the application of tariffs for storage, injection, and withdrawal of natural gas, which set out in a new version Annexes 3 and 8 to the reporting form, to expand the list of information to be provided by the gas storage operator.

Licensing

1. Amendments to the Procedure for Monitoring Licensees’ Compliance with Legislation | On 10 July 2024, the NEURC adopted amendments to the Procedure for Monitoring Licensees’ Compliance with Legislation in the Energy and Utilities Sectors, which clarify the provisions on issuing certificates for inspections, including their issuance in electronic form.

Regulation of information and reporting

1. Introduction of a test regime for disclosure of inside information | On 28 June 2024, the NEURC approved amendments to NEURC Resolution No. 614, which provide for a 60-day test regime for disclosure of inside information on platforms, during which no penalties are applied.
2. Amendments to the Reporting Rules | On 10 July 2024, the NEURC adopted amendments to the Reporting Rules in the areas of heat supply, centralised water supply and sewerage, which determine the procedure for applying a coefficient to utility tariffs during martial law.
3. Improvement of the report review process | On 10 July 2024, the NEURC adopted amendments to certain NEURC resolutions to improve the process of reviewing reports on the implementation of the Compliance Programmes for the previous calendar year by the Compliance Officers.
4. Protection of restricted information | On 10 July 2024, the NEURC adopted amendments to the Resolution on the protection of information that may be classified as restricted information under martial The NEURC considers it reasonable to publish the Distribution System Operator’s Compliance Programmes and reports on their implementation for the previous calendar year by the authorised persons on compliance. At the same time, close access to the information contained in certain provisions is envisaged.
5. Clarifications on REMIT requirements | On 15 July 2024, the NEURC published on its website answers to the most frequently asked questions on the implementation of the European Union’s Regulation on Wholesale Energy Market Integrity and Transparency (REMIT ) in the context of inside information disclosure. In particular, the document addresses the issues of what exactly is considered inside information, the procedure for its disclosure, and how market participants can ensure transparency of their operations. The regulator also emphasised that the answers to the questions may be updated and supplemented with new clarifications at the request of market participants.

Other

1. Amendments to the Procedure for Determining the Amount of Fines | On 28 June 2024, the NEURC adopted amendments to the Procedure for Determining the Amount of Fines imposed by the NEURC to clarify the circumstances for which a reduction in the amount of a fine may be applied.
2. Exemption from taxation of imports of goods for the energy sector | On 16 July 2024, the Parliament of Ukraine adopted the Law amending the Tax Code of Ukraine regarding the exemption from VAT on importing goods for the production and repair of mechanised demining machines. The Parliament also adopted the Law on Amendments to the Customs Code of Ukraine regarding the exemption from customs duties and VAT on importing energy equipment, wind and solar generation equipment, and batteries.
3. Agreement for participation in special auctions published | On 24 July 2024, NPC Ukrenergo published an agreement for participation in special auctions for ancillary services for up to 5 years. The agreement, the procedure for its conclusion and the application form are published on the official website of NPC Ukrenergo.

By Yaroslav Petrov, Partner, Asters

Integrites, working with Holman Fenwick Willan, has advised Nibulon on reprofiling a USD 80 million pre-export credit facility extended by a syndicate of banks, including ING Bank NV, Credit Agricole CIB, the European Bank for Reconstruction and Development, and FMO, the Dutch entrepreneurial development bank. CMS advised the lenders.

According to Integrites, Nibulon is a Ukrainian grain export company, the largest operator of elevators, and one of the biggest agricultural producers in Ukraine, with a land reserve of over 76,000 hectares.

The Integrites team included Partner Igor Krasovskiy, Senior Associate Yuriy Korchev, and Junior Associate Artem Suchenko.

Editor’s Note: After this article was published, CMS announced that its team included Kyiv-based Partner Ihor Olekhov, Counsel Kateryna Chechulina, Associate Iryna Barlit, and Trainee Ruslan Dotsenko, Sofia-based Partner Elitsa Ivanova, and further team members in London and Zurich.

Sayenko Kharenko has advised the Export and Investment Fund of Denmark on a EUR 12.8 million secured term loan facility to Nibulon Agricultural.

EIFO is a Danish state-owned financial institution that combines the functions of a promotional bank and export credit agency. Its activities include loans, guarantees, and export financing.

Nibulon is a grain exporter in Ukraine.

According to Sayenko Kharenko, “the project’s primary objective is to modernize the Nibulon’s agricultural machinery fleet, enhancing the efficiency of agricultural production with innovative Danish technologies and increasing the yield of grain crops.”

The Sayenko Kharenko team included Partner Anton Korobeynikov, Associate Vladyslava Mitsai,Paralegals Polina Savinska, Artem Medvetskyi, and Mykola Suprunovych.

 

In response to the extensive destruction caused by Russia to Ukraine’s critical energy infrastructure, the Ukrainian government continues to implement emergency measures to restore energy-generating capacities and ensure energy stability across the country.

One recently adopted measure exempts energy-generating equipment imported into Ukraine from VAT and customs duties. These measures were implemented by Laws of Ukraine No. 3854-IX and No. 3853-IX dated July 16, 2024, which entered into force on July 27, 2024.

VAT and customs duties exemption

Temporarily, for the duration of martial law in Ukraine—which was introduced on February 24, 2022—but no later than January 1, 2026, goods that have been classified under the following codes under the UKT ZED and imported into the customs territory of Ukraine for free circulation (this includes goods transported (sent) into the customs territory of Ukraine in international postal and express shipments) are exempt from import VAT and import duties:

• 8406 [Steam turbines and other turbines] (except 8406 10 00 00)
• 8410 [Hydraulic turbines, water wheels and regulators for them] (only hydraulic turbines and their parts)
• 8483 40 21 00 [Cylindrical and helical gears]
• 8502 20 40 90 [Electric generator installations with spark-ignition piston engines with a power output of more than 7.5 kVA but not more than 375 kVA other than ones for civil aviation]
• 8502 20 60 90 [Electric generator installations with spark-ignition piston engines with a power output of more than 375 kVA but not more than 750 kVA other than ones for civil aviation]
• 8502 20 80 90 [Electric generator installations with spark-ignition piston engines with a power output of more than 750 kVA other than ones for civil aviation]
• 8411 [Turbojet, turboprop, and other gas turbines] (except turboprop and turbojet engines and their parts)
• 8501 64 00 00 [Electric generators of alternating current (synchronous generators) with a power output of more than 750 kVA]
• 8504 40 84 00 [Inverters with a power output not exceeding 7.5 kVA] (except inverter welding machines)
• 8504 40 88 00 [Inverters with a power output exceeding 7.5 kVA] (except inverter welding machines)
• 8504 40 90 00 [All other inverters than mentioned above] (except inverter welding machines)
• 8507 60 00 00 [Electric batteries, including separators for them, rectangular (including square) or any other shape, Lithium-ion] (except energy storage installations with a capacity of less than 300 W of alternating and/or direct current and individual lithium-ion cells with a capacity of less than 200 Ah)
• 8541 43 00 00 [Photovoltaic cells, assembled in modules or made into panels]
• 8537 [Boards, panels, consoles, desks, distribution boards, and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numeric control apparatus, other than switching apparatus of heading 8517] (except 8537 10 98 10)
• 8503 00 99 00 [Parts intended exclusively or mainly for machinery of heading 8501 [motors and generators, electric] (other than electric generating installations) or 8502 [electric generating installations and rotating electrical converters] (only for wind-power generating installations).

Notably, a wind turbine as a one object (code under UKT ZED 8502 31 00 00) has not been exempted from VAT and import duties. So, under the implemented measures only its certain parts are entitled to the exemption during the import.

Equipment financed by the Energy Community Secretariat

Separately, please note that energy-generating equipment and goods placed under the import customs regime in Ukraine, financed within agreements by the Energy Community Secretariat, will also be exempt from import VAT and customs duties. By the end of August 2024, the Cabinet of Ministers of Ukraine shall determine the list of such equipment and goods with codes according to the UKTZED, as well as establish the procedure for confirming that the import transactions are conducted within agreements financed by the Energy Community Secretariat.

By Maksym Sysoiev, Partner, and Valeria Tarasenko, Tax Consultant, Dentons

Following the implementation of the first stage of the Competition Law reform, the Antimonopoly Committee of Ukraine (AMC) unveiled a new Draft Law on 24 July 2024, marking the second stage of the reform. This draft aims to further align Ukrainian competition legislation with EU standards and refine certain previous changes.

The AMC is inviting comments on the Draft Law until the end of August 2024. After this consultation period, the document will be submitted to Parliament for a vote, with the AMC expecting the changes to take effect in 2025.

The main proposals of the reform are summarized below:

1. Cooperation with the EU Commission and the NCAs. The Draft Law clarifies the rules governing the AMC’s exchanging information with the EU Commission and the NCAs during merger reviews, investigations, and other activities.

2. Anticompetitive agreements

• Abolishing the notification system for concerted practices. Currently, the Competition Law requires that arrangements not covered by any of the block exemptions adopted by the AMC be individually notified and cleared (similar to the regime that existed in the EU before 2004). The Draft Law abolishes this notification system, replacing it with self-assessment. If parties determine that the arrangement is not anticompetitive and proceed with its implementation, but the AMC later investigates the arrangement, the burden of proving the absence of a negative impact on competition lies with the parties.
• General prohibition and voidness. The Competition Law prohibits anticompetitive concerted practices, but does not automatically declare them void. The Draft Law addresses this by stipulating that the relevant arrangements are automatically void.
• De minimis.The changes incorporate the EU’s de minimis concept into the Competition Law, stipulating that the prohibition of anticompetitive concerted practices does not apply when such practices have no appreciable impact on competition. The AMC is tasked with defining detailed criteria for applying this concept. However, concerted practices “by object” cannot benefit from the de minimis

3. Abuse of dominance. The Draft Law clarifies definitions for certain types of abuses of dominance. Specifically, it states that only cases of applying dissimilar conditions to equivalent transactions, which place the counterparties at a competitive disadvantage, may violate the law. Additionally, it clarifies that creating obstacles to market entry or exit may not constitute a violation if they result from competition. The Draft Law also clarifies the procedure for courts to find arrangements resulting from the abuse of dominance invalid.

4. The reform introduces a number of new definitions, such as “upstream market”, “downstream market”, “economic activity”, and incorporates the concept of restrictions by object/effect. Also, some existing definitions are revised, including “undertaking”.

5. Superior bargaining position. New concepts of “superior bargaining position” and “abuse of superior bargaining position” are introduced. An entity is considered to have a “superior bargaining position” over another entity if the latter is dependent on it. The existence of a “superior bargaining position” is assessed using various quantitative and qualitative criteria. Unlike abuse of dominance, a “superior bargaining position” does not require the entity to hold a dominant position in any market. In particular, an “abuse of superior bargaining position” occurs when an entity imposes terms on the dependent entity that the latter would not accept absent the economic dependence. The Draft Law provides examples of such abusive conduct and envisages a sanction of up to 5% of the entity’s global turnover.

6. The changes empower the AMC to summon representatives of an undertaking or any individual possessing relevant information for an investigation to attend an interview.

7. Interim measures. Under the Competition Law, the AMC can issue a preliminary decision with interim measures, such as prohibiting certain actions, during the review of a case upon request from a third party. The Draft Law proposes to expand the AMC’s authority to issue such injunctions on its own initiative and clarifies the procedure for doing so.

8. Remedies and commitments. The reform clarifies the procedure for the AMC to impose behavioral and structural remedies in its decisions to address and end infringements. Additionally, the Draft Law allows parties to voluntarily propose commitments during the review of an infringement case to remedy their violations. These commitments can include behavioral or structural remedies deemed necessary by the parties to halt the violation and address its causes and consequences. If the commitments address the AMC’s concerns, the authority can make them binding and close the case without formally finding a violation or imposing fines. However, offering commitments is not permitted for anticompetitive concerted practices “by object.”

9. Periodic penalty payments. Under the Draft Law, the AMC may impose periodic penalty payments of up to 5% of an undertaking’s average daily turnover to address continuing non-compliance with its decisions/requests (such as failure to comply with remedies, omission to provide the AMC with the requested information). This penalty can accrue for each day the relevant non-compliance lasts.

10. Succession of liability. It is clarified that if a fine cannot be collected due to the liquidation or reorganization of a legal entity, or the cessation of its income-generating activities, the fine may be imposed on its legal or economic successors. This refers to entities that have acquired assets from the infringer that are used for business activities.

A more detailed overview of the changes will follow once the Draft Law is voted by the Parliament.

By Pavlo Verbolyuk and Sergiy Glushchenko, Counsels, Asters

Avellum has advised the Greenville group of companies on the sale of a ready-to-build wind power plant with an overall projected capacity of approximately 150 megawatts to the Galnaftogaz Group. Law Whales reportedly advised the Galnaftogaz Group.

Greenville operates in the area of renewable energy and residential and commercial real estate.

The Avellum team included Partner Yuriy Nechayev, Managing Associates Maryna Buinytska and Oleksandr Volodin, and Associate Olha Rudevych.