News (#01-02 January-February 2016)

Biznews

Trade

Resolution banning import of goods from Russia in effect now

On 11 January 2016 the Resolution of the Cabinet of Ministers of Ukraine on the ban on import to the customs territory of Ukraine of goods originating in the Russian Federation came into effect.

The list of goods subject to the ban on import to Ukraine includes both food products and equipment for railways or tramways, diesel-electric locomotives, etc. The embargo on Russian goods will remain in force until 5 August 2016.

The government of Russia adopted a decision to impose an embargo on food imports from Ukraine starting on 1 January 2016.

 

Oil & Gas

Gazprom calls off tenders for construction of gas pipeline to Nord Stream 2

PJSC Gazprom has called off several tenders for the execution of construction and assembling operations on a 400 kilometer section of the Ukhta-Torzhok gas pipeline, which was supposed to be a supply pipeline for Nord Stream 2. The total value of the tenders was estimated at RUB 13 billion.

Gazprom had agreed at the beginning of September 2015 to the construction of the third and the fourth lines of Nord Stream. Apart from Gazprom and Engie, the consortium included E.On, BASF / Wintershall, OMV and Shell.

M & A

In-depth investigation into acquisition of Baker Hughes by Halliburton

The European Commission has opened an in-depth investigation to assess whether the proposed acquisition of oilfield service supplier Baker Hughes by rival Halliburton would impede effective competition in breach of EU Merger Regulation. Both Halliburton and Baker Hughes are American publicly-listed companies with headquarters in Houston, Texas.

The takeover would bring together the world’s second and third largest oilfield service suppliers, thereby eliminating one of the three current main global competitors (i.e. Halliburton, Baker Hughes and market leader Schlumberger). The opening of an in-depth inquiry does not prejudge the final result of the investigation.

Oilfield service markets are characterized by high technological and financial barriers to entry, leading to a market with only four globally active competitors with extensive portfolios: Halliburton, Baker Hughes, Schlumberger and, to a lesser extent, Weatherford.

The Commission’s preliminary investigation indicated serious potential competition concerns in more than 30 product and service lines, both offshore and onshore. In particular, the investigation revealed that Halliburton and Baker Hughes seem to be close competitors, both in terms of tenders and in innovation. The Commission was notified of the transactionon 30 November 2015.

Antitrust

Abandoning routine inspections till June

The Antimonopoly Committee of Ukraine has advised that with the purpose of deregulation and reduction of administrative pressure on business, its agencies do not plan to conduct routine inspections of economic entities in the period from 1 January 2016 until 30 June 2016 inclusive. Under conditions of sharp changes on the markets of Ukraine, the long-term planning of inspections is not efficient enough. In addition, the institute of routine inspections of economic entities during an investigation of anti-competitive concerted practices is not applied at all in the practice of competition protection agencies in countries with steady traditions of a market economy.

 

 

 

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