Ukraine Exempts Certain Cross-Border Transactions in Military/Defence Sector from Merger Control Regime

On 20 March 2024, the Ukrainian Parliament passed an amendment that exempts certain defence/military-related transactions from merger control requirement. This change seeks to streamline the implementation of deals that can bolster Ukraine's defence capabilities and support its efforts amidst the ongoing Russian invasion.

The exemption will apply while the martial law is in effect and for 90 days after that, provided the following conditions are met:

the transaction is implemented outside of Ukraine
the transaction concerns development of technologies and production of military and dual-use goods in Ukraine
the final recipients and/or purchasers of the products and technologies are the Armed Forces of Ukraine or law enforcement/military agencies in Ukraine
the products and technologies are not developed and produced in Ukraine, or their production is insufficient
the acquirer is an undertaking that is engaged in activities related to military products, services, technologies, or dual-use goods

These changes currently await signature by the President and will become effective upon promulgation.

For further information, please contact Partner Igor Svechkar and Counsel Pavlo Verbolyuk