On 16 May 2024, the Ukrainian Competition Law was amended to exempt certain transactions in the military and defence sector from merger control requirements. During the period of martial law, and for 90 days after its lifting, this exemption will remain in place in order to bolster Ukraine’s defence capabilities and to help counter russia’s armed aggression.
As a result of these amendments, merger control requirements in Ukraine will not apply to foreign-to-foreign concentrations so long as the following criteria are satisfied:
- the transaction involves the advancement and utilization of technologies, as well as the manufacturing of military and dual-use products;
- the end consumers and/or recipients of these products and technologies are from the Armed Forces of Ukraine, the nation’s law enforcement agencies, military units, or other entities involved in the fight against terrorism and/or in the implementation of measures for ensuring national security and the defence of Ukraine;
- these products (technologies) are not developed, produced, or used in Ukraine, or their output is insufficient to meet the needs of the nation’s defence industry; and
- the acquirer is a company that operates in the market for dual-use goods, military services, technologies, or products.
For more details please contact our Competition team in Ukraine: Olexander Martinenko, Partner, at olexander.martinenko@kinstellar.com, Yulia Eismont, Counsel, at yulia.eismont@kinstellar.com, or Olena Tsygulska, Associate, at olena.tsygulska@kinstellar.com, +380 44 490 9575.
