Anti-trust agency opens case against Naftogaz for setting prices for households too high
The Antimonopoly Committee of Ukraine (AMC) has opened a case about the possible abuse of monopoly position by Naftogaz Ukrainy when setting natural gas prices for the population from November 1, 2018, the committee’s website reports.
The AMC reported that Naftogaz has special obligations to sell gas to domestic consumers (the public). At the same time, the company sets prices in this market segment based on the price of gas for industry, which it offers.
According to information available to the committee, Naftogaz set prices for industrial consumers higher than those established in a competitive environment, in particular, according to the results of electronic exchange trading on the Ukrainian Energy Exchange and on European hubs with the condition of gas delivery to the Ukrainian border (NCG).
“This may indicate the establishment by Naftogaz Ukrainy from November 1, 2018 of prices for natural gas for the population at a level that could not be established if there was significant competition in the natural gas markets,” the statement said.
The Dutch Entrepreneurial Development Bank FMO (Nederladse Financierings-Maatschappij voor Ontwikkelinglanden N.V.) and Cyprus-based Abbeydrift Limited through a specially established company (SPV) can jointly with Cypriot Badoix Investments Ltd. indirectly gain control over Allseeds S.A. (Luxembourg), the holding company of Allseeds Group, a large Ukrainian producer and exporter of vegetable oils. According to the website of the AMC, it provided the relevant permit to FMO and Abbeydrift Limited.
Earlier mass media called Badoix Investments Ltd. one of the founders of Allseeds S.A.. At present, the ultimate beneficiary of the Luxembourg company in the state register are CEO of Allseeds Viacheslav Petrysche and Trade Director Cornelis Vrins (a citizen of Switzerland).
The Cypriot company Abbeydrift Limited was established in late 2014. There is no additional information about it.
The Dutch Entrepreneurial Development Bank FMO in mid-July this year disseminated information on preparing a project for the issuance of $15 million loan to Allseeds to increase the company’s capacity and achieve maximum efficiency without buying new equipment. However, now information about this project is not available on the FMO’s website.
Allseeds Group was founded in 2010. In July 2015, the group commissioned an oil extraction plant at Yuzhny port with a capacity of processing 2,400 tonnes of sunflower seeds per day (or 1,800 tonnes of rapeseeds, or 1,500 tonnes of soybeans).
The Antimonopoly Committee of Ukraine has permitted BAU-Capital LLC belonged to the owners of the Kovalska industrial and construction group to gain control over public joint-stock company Darnytsia Reinforced Concrete Constructions Plant and Beton Service LLC (all based in Kyiv).
The committee said that the regulator permitted the company to buy shares in PJSC Darnytsia Reinforced Concrete Constructions Plant and a stake in the charter capital of Beton Service LLC, granting over 50% of the votes in the management bodies of the two companies.
In January 2018, the committee started hearing a case regarding gaining control by BAU-Capital over the two above-mentioned companies. The case concerns the concentration of the Kovalska industrial and construction group on the concrete mixture market in Ukraine.
BAU-Capital currently has control over PJSC Svitlana Kovalska Reinforced-Concrete Constructions Plant (RCCP), Beton Complex and Avtobudcomplex-K LLC selling readymix concrete under the Concrete from Kovalska trademark.
The Kovalska industrial and construction group was founded in 2006.
The Antimonopoly Committee of Ukraine has permitted Dragon Capital investment company via NUF Equity Investments Limited to acquire 50% in UPG Food Holdings Limited (both based in Nicosia, Cyprus), which owns a large turkey meat producer.
The committee also permitted NUF Equity Investments Limited and Dytchi-Invest Limited to fulfill the conditions of a draft agreement on the sale and purchase of shares, which will be signed between the two companies to restrain competition for the period of five years.
Dragon Capital has not yet commented on the deal.
UPG Food Holdings Limited, which beneficiaries are Yulia and Volodymyr Dutchak, owns the group of companies UPG-Invest founded in 2002. It is engaged in growing turkey and producing meat under the Siayvir trademark. It includes several production complexes with a total area of about 60,000 square meters, a slaughterhouse and equipment for cooling and instant freezing of meat. The production capacity is 12,000 tonnes of meat per year.
The UPG-Invest Group has owned the Abo-Mix fodder plant since 2014. Its capacity is 12,000 of granulated fodder a year for all types of household animals and birds. The products are made under Agro Gold Mix trademark and sold in Ukraine and the EU.