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Competition Law and Policy
Ukraine, as all other former Soviet republics, inherited a highly concentrated industrial structure with a completely monopolized distribution sector. Retail trade monopolies began to break up slowly already in Soviet times, but the production and wholesale sectors remained dominated by state-owned monopolies or enterprise associations. Ukraine had no experience in promoting competitive practices. On the contrary, the existing state structures were in charge of establishing socially acceptable prices and preventing speculative transactions.
Given this situation, the country has made remarkable efforts in developing antimonopoly legislation and practices. The legislation of Ukraine, developed with substantial international assistance, provides the base for vigorous enforcement of sound competitive principles, particularly in the area of the protection from unfair competition.
The competition law defines in detail such terms as "monopoly position," "monopoly prices and activities," and "monopoly associations." The law generally prohibits agreements between market participants that distort or prevent domestic or regional competition.
(Note: This information was taken from the Competition Law chapter of the 1999 Ukraine BizCLIR report. For more information, please see the report.)
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