On 20 March 2024, the Parliament of Ukraine adopted amendments to the Law of Ukraine “On the Protection of Economic Competition” temporary exempting cross-border transactions in the military and defence sector from the merger control notification in Ukraine (“Amendments”). AVELLUM team is thrilled to have significantly contributed to the elaboration of the Amendments.
The Amendments stand as a pivotal piece of legislation with far-reaching implications for attracting investments in the military and defence sector. They simplify merger control over cross-border transactions carried out to develop and implement technologies and production of military and dual-use goods. This exemption would apply to transactions carried out outside Ukraine during martial law and for 90 days after its termination under the following conditions:
- ultimate recipients and/or purchasers of such goods and technologies should exclusively be the Armed Forces of Ukraine or law enforcement agencies, military formations, and other entities combating terrorism, ensuring national security and defence, and deterring armed aggression by Russia;
- the goods (technologies) are not developed/produced in Ukraine, or their production is insufficient; and
- an acquiring undertaking is a business entity that carries out activities in the markets for the products, services or technologies for military purposes, or dual-use goods.
The Amendments are currently awaiting the President’s signature and will come into force on the day following its publication.
Partner Mykyta Nota led the AVELLUM team with significant support from managing associate Olha Samoilenko and associate Veronika Humeniuk.
“At AVELLUM, we recognise the important role that competition laws play in fostering innovation, ensuring compliance, and driving progress needed for our victory. We are fully committed to using our expertise to facilitate the development of a sound legal framework that supports business in these challenging times,” says Mykyta Nota, Partner at AVELLUM.
“AVELLUM’s involvement underscores our commitment to contributing to the legal environment that strengthens Ukraine’s defence capabilities,” says Partner and Head of Defence and Miltech at AVELLUM Andriy Romanchuk.
