Antimonopoly Committee penalizes Kolomoisky-related fuel stations for UAH 4.7 bln

The Antimonopoly Committee of Ukraine decided on March
30 to penalize operators of 1,625 Ukrainian fuel stations for a total of UAH
4.7 bln. The move comes after the AMC discovered a conspiracy between them
aiming at setting uniform retail prices for their products and purchasing fuel
from a local producer at above-market prices. Penalized companies include
Avias, Ukrtatnafta, Ukrnafta (UNAF UK) as well as over 160 small legal entities
(collectively named by the committee as “project AVIAS”), which cumulatively
have a 25% share of the domestic fuel retail market. The investigation was
initiated in 2016, the committee reported.

Tycoon Ihor Kolomoisky controls the Avias petrol
network as well as minority stakes in the vertically integrated oil company
Ukrnafta and fuel producer Ukrtatafta. A stake of 50% in Ukrnafta and 43% in
Ukrtatnafta is owned by state-controlled natural gas giant Naftogaz (NAFTO).

Alexander Paraschiy: No doubt,
the penalized companies will sue the committee, and the litigation might take
many years. In any case, the new episode of pressure on Kolomoisky should be
welcomed by Ukraine’s western partners. Meanwhile, it remains unclear what
effect the imposed penalties will have upon state-controlled Naftogaz.

In any case, the committee’s ruling indicates that it
is a high time for Naftogaz to pursue the division of Ukrnafta assets
between the state company and the group of Kolomoisky, where the latter, as we
understand the process, will receive the gasoline retail business of Ukrnafta.
Theoretically, the penalties imposed on Ukrnafta’s gasoline retail division
could lead to a decrease of its valuation in the process of the assets split,
which could benefit Naftogaz.