Precedent: INTEGRITES ensured access of AKW Ukrainian Kaolin Company to the railway infrastructure in Ukraine

INTEGRITES successfully represented interests of AKW Ukrainian Kaolin Company (UKC*) before the Antimonopoly Committee of Ukraine (the AMCU), having protected the rights of the kaolin manufacturer infringed by the rail operator in Vinnytsia region. The case sets a positive precedent for the local and international companies, users of the transport infrastructure that in Ukraine belongs to the state-owned companies.

Delivery of kaolin from the UKC production site is carried out by rail. Since 2018, the rail operator Kyiv-Dniprovske MPPZT, PrJSC has unreasonably overpriced UKC’s access to the railway sidings and conducted the ultimatum-like negotiations. Having no alternatives to deliver its products to the public rail tracks, UKC filed a claim on abuse of dominance by the opponent to the AMCU.

On October 22, 2020, the Provisional Administrative Board of the AMCU recognized Kyiv-Dniprovskiy MPPZT, PrJSC as a monopolist, imposed UAH 7 mln fine, and prescribed to terminate the violation.

Antitrust and Competition practice group at INTEGRITES led by Partner Serhiy Shershun represented interests of UKC before the Antimonopoly Committee of Ukraine. The team included Attorney Mykola Boichuk, associates Andrii Lasikov and Orest Turkevych.

Serhiy Shershun, Partner, Head of Antitrust and Competition at INTEGRITES: “The precedent case of UKC enables other manufacturers with the restricted access to the railway sidings to protect their interests in the AMCU. This case also applies to other types of transport infrastructure the access to which for business has been restricted or unreasonably overpriced”. 

Dr. Oleksiy Feliv, Managing Partner at INTEGRITES: “INTEGRITES has been advising international investors, particularly those from Germany, for many years. Despite the recent improvements in the business climate of Ukraine, some foreign players are still facing challenges from the state authorities or state-owned companies. We are delighted to have protected interests of a large kaolin manufacturer and exporter who sees this win as a step towards sustainable development of its business in Ukraine”. 

* UKC (AKW Ukrainian Kaolin Company, LLC) is a part of the Quarzwerke Gruppe (Germany), which extracts kaolin in Vinnytsia region and exports it to more than 50 countries worldwide