The Northern Commercial Court of Appeal on February 23 upheld a complaint of PJSC A/T B.A.T. – Pryluky Tobacco Company owned by British American Tobacco (BAT) related to the decision of the trial court and the Antimonopoly Committee of Ukraine on imposition of a fine UAH 450 million, the company’s press service said on Wednesday.
“The Court of Appeal has carefully examined the evidence and facts of the case and has found erroneous the legal position of the court of the first instance and groundless the qualifications of the Antimonopoly Committee of Ukraine, on which we have been repeatedly emphasizing,” the press service of BAT said.
The company said that it welcomes the decision of the Court of Appeal. After more than a year of judicial debates, we have finally achieved justice in our cause and proved our rightness. The company believes that the court’s decision guarantees the stable functioning of the constitutional state in Ukraine and serves as a strong positive signal to investors from around the world. The press service of the company told Interfax-Ukraine that B.A.T. – Pryluky did not admit his guilt and did not pay the fine imposed by the committee in the amount of UAH 450 million.
As reported, the Antimonopoly Committee in October 2019 imposed a fine of UAH 6.5 billion for anti-competitive concerted actions on cigarette manufacturers and distributors: UAH 3.4 billion on Tedis Ukraine, UAH 370 million on Philip Morris Sales and Distribution, UAH 810 million on Philip Morris Ukraine, UAH 430 million on PJSC JT International Ukraine, UAH 490 million on PJSC JT International Company Ukraine, UAH 170 million on Imperial Tobacco Production Ukraine, UAH 290 million on Imperial Tobacco Ukraine, UAH 80 million on British American Tobacco Sales and Marketing Ukraine LLC, UAH 450 million on PJSC A/T B.A.T. – Pryluky Tobacco Company, and also ordered these companies to stop violations.
According to the court decisions database, the Northern Commercial Court of Appeal heared the claim of B.A.T. – Pryluky over the fine imposed by the committee behind closed doors at the request of the committee.
On January 26, 2021, British American Tobacco Sales and Marketing Ukraine lost an appeal over the fine of UAH 80 million paid by the company with the Northern Commercial Court of Appeal. According to the company, the fine imposed by the committee was paid to avoid the accrual of penalties, although the manufacturer did not admit his guilt.
At the same time, Tedis Ukraine on February 2 was the first to achieve the satisfaction of the appeal against the committee in the Supreme Court and the invalidation of the fine of UAH 3.4 billion, which the company has not yet paid. The Supreme Court said that it upheld the cassation due to the impossibility of bringing any person to justice on the basis of decisions of the committee in other cases (as adjudicated), without obligatory proof of guilt in each individual case and taking into account the erroneous legal qualification of actions of Tedis Ukraine LLC.
Ukrzaliznytsia is planning pilot projects for the long-term lease of cargo terminals.
“We are planning several pilot projects related to the long-term lease of our assets, such as cargo terminals. We want to create centers with international players on the basis of cargo terminals,” Ukrzaliznytsia head Volodymyr Zhmak said during the All-Ukrainian Forum Ukraine 30.Infrastructure on Tuesday.
According to him, these projects will also create an opportunity of additional employment. The company really plans to optimize staff, but primarily at the expense of administrative and managerial staff, Zhmak said.
The State Automobile Roads Agency of Ukraine (Ukravtodor) plans to restore 150 bridges in 2021.
“The plan for 2021 is 150 bridges. By 2025 we will update at least 20 bridges in each region,” according to the presentation of Head of Ukravtodor Oleksandr Kubrakov at the Ukraine 30. Infrastructure forum on Tuesday.
According to the presentation, in 2020, Ukravtodor outstripped the target of the National Program for the Restoration of Bridges, restoring 158 structures compared with 100 bridges planned.
According to Ukravtodor, more than 80% of artificial structures in Ukraine were built before 1980. In total, there are 16,155 artificial structures in the country, of which 5,845 are on state roads and 10,310 on local roads. To date, only 73% of bridges have been examined.
At the same time, Director of the Road Development Department of Ukravtodor Andriy Ivko said that the priority program for restoration indicated 895 bridges requiring urgent repair. Another 169 are close to emergency condition, and their renewal is a matter of national security.
The Interdepartmental Commission on International Trade (ICIT) has initiated an anti-dumping investigation into the import of wood chipboard originating from the Republic of Belarus and the Russian Federation to Ukraine.
The decision of the commission made on February 16, 2021 on the initiation of an investigation comes into force from the moment of its publication, indicated in the report published in the Uriadovy Kurier newspaper dated February 20.
According to the report, the commission received a corresponding complaint from Svisspan Limited LLC (Kostopil, Rivne region)
According to the applicant, during the study period (H2 2017 – H1 2020), the share of dumped chipboard imports from Belarus and the Russian Federation exceeded half of the total imports, while the share of consumption ranged from 6.8% to 12.29% , in relation to production – from 5.03% to 11.72%. At the same time, the prices of dumped imports were significantly lower than the applicant’s price level for the entire study period and below the cost price level in H2 2019 – H1 2020.
Analysis of the dynamics of the main indicators of the applicant’s financial and economic activities during the study period showed a decrease in sales volumes, a loss of market share with an increase in consumption in the domestic market, a decrease in production volumes and deterioration in other financial indicators.
Having considered the complaint, the ICIT came to the conclusion that the import of chipboard from Belarus and the Russian Federation to Ukraine could be carried out at dumping prices and the level of the dumping margin cannot be considered minimal, and the volume of imports cannot be considered insignificant. The commission also said that the chipboard originating from these countries into Ukraine was imported in such volumes and on such conditions that it may harm the national manufacturer.
The investigation concerns wood chipboard, with the exception of chipboard panels covered with decorative laminated plastic, which are classified according to the Ukrainian Foreign Economic Activity Commodity Nomenclature as 4410 10 11 10 00, 4410 11 30 00 and 4410 11 90 00.
The Ministry for Development of Economy, Trade and Agriculture has been charged with carrying out the anti-dumping investigation. Interested parties are registered within 30 days.
Swisspan Limited is one of the leaders in the production of furniture boards in Ukraine, specializing in the production of sanded and laminated chipboards of its own trademark Swisspan by Sorbes. The company was founded in 2003 by the Swiss group Sorbes AG and, in addition to Swisspan Limited, owns LK Interplyt Nadvirna in Ivano-Frankivsk region, as well as the Repo Vabrikud plant in Estonia.
Main trade partners of Ukraine in % from total volume (export from Ukraine to other countries) in Jan-Nov of 2020.
SSC of Ukraine
National bank of Ukraine’s official rates as of 23/02/21
Source: National Bank of Ukraine
