Russia no longer recognizes Ukrainian extraction licenses issued for Crimea
In Russia, a law has come into force invalidating Ukrainian extraction licenses issued in the annexed Crimean Peninsula for the Black and Azov Seas. The occupation authorities will issue extraction rights under decisions made by the Government of Russia, adopted following the results of auctions.
The Russian Government will announce auctions for each subsoil area on the shelf of the Azov and Black Seas, establish the procedure and conditions for their conduct, composition and procedure for the activities of auction committees.
Russian law stipulates that Ukrainian licenses issued from 1 October 2015 will be cancelled.
In February 2018, Ukraine submitted the memorandum on Russia's violation of the UN Convention on the Law of the Sea to the International Tribunal for the Law of the Sea.
Google to declassify data about buyers of political advertising
According to the statement on its official website, Google will disclose information about buyers of political advertising and the amounts they spent on it. These actions will be undertaken by Google within the framework of the semi-annual report to ensure transparency of its activities.
This measure will affect advertisers who, starting from 31 May 2018, spent more than USD 500 on political advertising on Google.
Previously, Twitter and Facebook took the same measures, which was the result of accusations of providing insufficient information about costs spent on political advertising.
Google will update the data on a weekly basis, enabling its users to keep track of new advertising publications, as well as of new advertising customers.
AMCU examines large concentration in e-commerce market
The Antimonopoly Committee of Ukraine is considering a case of concentration in e-commerce markets. Since July there has been consideration of cases on concentration in the form of: acquisition by Temania Enterprises Ltd (Limassol, Cyprus) of shares in the authorized capital, ensuring excess of 50% of votes in the highest governance body of the following companies:
— UAPROM LLC (Kyiv, Ukraine);
— Aukro Ukraine LLC (Kyiv, Ukraine);
— Tiu.Ru LLC (Moscow, Russian Federation);
— Trade unitary enterprise Project Deal.by (Minsk, Belarus);
— Limited Liability Company Advertising Agency Satu.kz (Almaty, Kazakhstan).
As a result of these concentrations, the buyer (who owns the online trading platform Rozetka.ua) will take control of the marketplaces of acquired entities, namely, of: Prom.ua, Bigl.ua, Shafa.ua, Crafta.ua, Kabanchik.net, Zakupki.prom.ua, Satu.kz, Deal.by, etc.
A comprehensive study of the effect of concentration on the e-commerce markets is currently being conducted.
AMCU imposed fine on group of pharmaceutical companies for anticompetitive concerted practice
On 2 August 2018, the Antimonopoly Committee of Ukraine issued a decision following the results of consideration of the case on violation of the legislation on protection of economic competition by Roche Ukraine LLC and the distributors BaDM LLC, Business Center Pharmacy LLC and Alba Ukraine OJSC, in the form of anticompetitive concerted practice.
Fines for violations are imposed on:
— Roche Ukraine LLC — in the amount of UAH 9,115,817;
— BaDM LLC — UAH 5,407,948;
— Business Center Pharmacy LLC — UAH 3,207,361;
— Alba Ukraine OJSC — UAH 339,999 (there is no income, the company is being liquidated).
New FATF statement: among the countries with strategic flaws there is only one European country
To protect the international financial system from the risks of money laundering and terrorist financing and to encourage an increase in the level of compliance with anti-money-laundering and terrorist financing standards, FATF, the Financial Action Task Force, has specified jurisdictions which possess strategic flaws, with which it cooperates to eliminate identified flaws.
The following were mentioned among the jurisdictions with strategic flaws: Ethiopia, Pakistan, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Yemen.
Iraq and Vanuatu are on the list of jurisdictions no longer subject to the current global FATF process for standard compliance implementation.
The Democratic People's Republic of Korea is called a jurisdiction, in respect of which FATF encourages its members and other jurisdictions to apply countermeasures to protect the international financial system from constant and significant risks of money laundering and terrorist financing.
Iran is called a jurisdiction, in respect of which FATF encourages its members and other jurisdictions to apply enhanced due diligence measures proportional to risks such jurisdictions are threatened with.
Ukraine came to international capital market with private placing
The Ministry of Finance of Ukraine has carried out a private placing of short-term external government loan bonds maturing in 2019 for the sum of USD 725 million.
Bonds were placed among the leading international investors who provided financial support to Ukraine, within the context of the international capital market’s instability for developing countries.
Such a transaction allows Ukraine to meet its short-term needs for currency liquidity, as well as to benefit from flexible terms of raising funds.
The Ministry of Finance will continue to actively monitor market conditions and implement plans on internal borrowing.
Banking & Finance
DGF launches website called Lease of banks' property
The state-run Deposit Guarantee Fund has launched a specialized website called Lease of banks' property. The new resource contains a re-
gister of assets, which includes a complete list of assets of insolvent banks offered on lease, as well as their detailed characteristics. In total, the register contains information on almost 200 real estate items: starting from garages, garden cottages and offices, to petrol stations and production facilities. The resource is available at www.orenda.fg.gov.ua.
The site is developed to improve the efficiency of asset management of banks under liquidation and to simplify access to property information for potential tenants. A potential tenant has the opportunity to not only easily find an interesting asset, but also to automatically apply for its lease. Moreover, the main page of the site provides information on the standard forms of lease agreements.
The vast majority of items (about 75% of them) are non-residential real estate (of commercial, warehouse and production purpose). Also, it is possible to lease apartments, garages, etc. from insolvent banks.
ProZorro system’s integration into medicines procurement
According to a statement by the Ministry of Economic Development and Trade, from now on the list of medicines will be automatically transferred from the State Register of Medicines of the Ministry of Health of Ukraine to ProZorro. This will allow the customer, when announcing the tender, to choose the name of the medicine from the current list, and not to enter the data manually.
A strict link to the official list will reduce the number of manipulations or random errors made in the description of the procurement item and will simplify the search for tenders by suppliers. It is believed that this will help to better control procurement of medicines, compare prices for specific drugs in different cities and regions and to identify those who drive up prices.
Now, customers can choose the active substance (INN) and the scope of its action (ATC) from the list for all medicines for procurement. This will standardize the description of the procurement item and will prevent corrupt practices.