Akhmetov’s business: what effect has the anti-monopoly Committee

Бизнес Ахметова: какое влияние имеет Антимонопольный комитет

Gasparovicova of the Antimonopoly Committee of Ukraine, 2015-2019 Agia Zagrebelsky on the Committee’s work and business of the Foundation in the program “Here is how” with Aleksey Shalaysky and Alisa Yurchenko.

About the property Akhmetov

– Rinat Akhmetov – the richest Ukrainian oligarch. He owns almost everything: media, banks, retail, real estate, gas stations, oil, gas, coal, steel, agriculture, communication, insurance, etc.

The largest Akhmetov has a monopoly in the energy holding. Energy business oligarch various. For example, coal mining, from which the TES is current, is transferred to power companies and then to reach consumers – each of these links is controlled by the Rinat Akhmetov.

– Speaking of angle, nearly 80% of all coal in Ukraine is produced in the mines Akhmetov. With regard to thermal generation, i.e. thermal power plants, the Akhmetov’s group here owns more than 80% of all TES. Therefore, I can conclude that this is the second monopoly tycoon.

– If to speak in General about the situation in Ukraine, the power companies, which belong to the DTEK group, transmit more than 48% of the electricity Ukrainians. Each regional power is a natural monopoly, because the field is only one structure is concerned with the transmission of electricity. More than 90% of the electricity exported by the company Akhmetov.

On compulsory division

– 80% of thermal generation is the DTEK group, which was outside the regulation of value. That is the market conditions in which the group DTEK she puts those costs which it considers necessary. And, in my opinion, she already has market power and has more serious signs of monopoly.

Legislation on compulsory division, unfortunately, in Ukraine not as perfect as we would like. The only decision on compulsory division was taken by the Antimonopoly Committee in 1995. It concerned the dairy factories in the Donetsk region. After that, no action was taken.

– Compulsory division in Ukraine is a liability. And this is not a recommendation, and liabilities. The Antimonopoly Committee obliged the Respondent to share. But according to the current legislation of Ukraine, the Antimonopoly Committee has no right to say how the defendant should share.

– When the defendant is an offer to sell something, the Antimonopoly Committee must count what is left. And then to say, lost as a result of such sale the defendant its monopoly position or not. If the defendant didn’t lose it, it is not perceived that obligations have been met. And the defendant must think that even offer to sell.

On fines

– In Ukraine, the forced separation is accompanied by penalties for the violation of the self. Legislation is set aside at least 6 months. The Antimonopoly Committee must, in its decision to set the deadline within which it must be in the enforcement division.

In the future, if the decision is not successful, the Antimonopoly Committee may apply to the court for compulsory execution of this decision, go through three instances, then to the Executive document, go to the Executive service of the Ministry of justice, which should do their part to compel the defendant to share.

About the employees of the AMC

– The procedure of appointment and dismissal of commissioners sufficiently politicized. That is, the state, the Commissioner may vary depending on the position of the President of Ukraine, Administration of the President or Office of the President of Ukraine, Cabinet of Ministers of Ukraine. And the latter can initiate the procedure of dismissal, for example, causes loss of confidence, which in no way explained.

The Antimonopoly Committee during the entire time did not have budget autonomy. That is, all funds which he receives, approves, Parliament, certain Central Executive authorities, the Ministry of Finance, government and others.

In 2016, the European experts noted that the Antimonopoly Committee is one of the most poorly funded institutions in Ukraine with the lowest wages.

What is a monopoly?

This is the type of market structure where only one firm offers the whole market the amount of good which has no close substitutes.

Modalities of a monopoly:

• One manufacturer – a lot of buyers.

• The monopolist fully covers the market needs in a product.

• Occurs where there are barriers of entry into the market.

• Products are homogeneous has no close substitutes.

• The price of the monopoly products are not economically justified (high).

Бизнес Ахметова: какое влияние имеет Антимонопольный комитет

Бизнес Ахметова: какое влияние имеет Антимонопольный комитет