News

27-10-2016

Tobacco distribution market may significantly change, -Counsel at “Spenser & Kauffmann” Attorneys at Law.

Trade Company “Megapolis” unexpectedly for experts joined new sanction list of Russian companies which are not allowed to work in Ukraine. In our country this company is associated with almost monopoly distribution of cigarettes in domestic retail, although in May, Ukrainian subsidiary “Megapolis Ukraine” has changed the name and became TEDIS Ukraine.

Whether the status of the Ukrainian distribution company will be changed? Whether tobacco companies will work with it? UBR asked Counsel at “Spenser & Kauffmann” Tatiana Kharebavа.

According to the lawyer, the situation will change neither for TEDIS Ukraine with its Ukrainian partners no for Ukrainian consumers.

“Economic sanctions, applied to joint-stock companies “Megapolis” will cover only Russian company. For legal entities of Ukraine there is an established ban on economic operations with this company”, – says Ms. Kharebavа.

Meanwhile, the lawyer mentioned another danger hanging over tobacco monopolist. There is a matter of this company in the Antimonopoly Committee of Ukraine which is still up in the air and its final decision is yet to be announced.

But if the former “Megapolis Ukraine” is officially determined as monopolist on the tobacco distribution market, than, according to Ms. Kharebavа, the company may face the penalty up to 10% from the annual revenue, and can be obliged to compensate for damage, forced division etc., explains the expert.

“Depending on the measures, undertaken by the Ukrainian Antimonopoly Committee, tobacco distribution market may significantly change, for instance, there will be more wholesale distributors”, – summarized the Counsel at “Spenser & Kauffmann”.