Bogdan Motors fined by anti-monopoly regulator

The Anti-Monopoly Committee of Ukraine (AMCU) fined two car dealers, Paritet Motors and Bogdan’s (LUAZ UK) Hyundai Motor Ukraine, at a total of UAH 77 mln, the regulator reported on October 2. The two companies colluded on a tender that the state mail service convened for the purchase of trucks, according to results of the AMCU investigation. No other details on the penalties imposed were disclosed.

Alexander Paraschiy: Despite it being premature to state that the companies will pay the fine, and while the size of penalty imposed on Hyundai Motor Ukraine is not known, the news is clearly not encouraging for Bogdan Motors. On the flipside, the possible penalty will be not disastrous for the company, whose operating cash flow was UAH 89 mln in 1H13. Nor it will damage the company’s business, which is in lousy shape as it is, producing losses over the last five years at least, with little chance for breaking even this year as well.