AMCU fined 18 companies for collusion at State Geology auctions

AMCU fined 18 companies for collusion at State Geology auctions

16 special permits – for limestone, quartz sand, amber, granite, gabbro, sandstone, and chalk – may be invalidated.

In April-September 2024, territorial divisions of the Antimonopoly Committee made at least 10 decisions regarding distortion of competition during auctions of the State Geology and Subsoil Service of Ukraine, fining 18 companies.

NADRA.INFO reports citing data from the AMCU and interregional territorial divisions of the Committee:

• PE "Tiogran" and PE "TVT" – penalized for coordinating actions during the auction for the sale of a permit for the Southern section of the Adamovskyi-1 gabbro deposit in the Zhytomyr region in August 2021. The special permit with minimal bidding was won by "Tiogran". There were no other participants. The winner of the auction was fined 25,000 UAH, and PE "TVT" – 15,000 UAH. Details – in the decision of the Administrative Collegium of the Northern Interregional Territorial Division of the AMCU (MTV AMCU) 60/21-р/к dated 19.03.2024.
• LLC "Konstyantynivsky Plant of Metallurgical Equipment" and LLC "Zavod Ekosplav" – for bidding on the sale of a permit for chalk extraction at the Mayakovske-2 deposit in the Donetsk region in April 2021. There were no other participants. The auction winners LLC "KPMO" and LLC "ZES" were fined 68,000 UAH each. Details of the collusion – in the decision of the Administrative Collegium of the Eastern MTV AMCU 70/13-р/к dated 19.03.2024.
• LLC "Korkop Mining" and LLC "Investment and Construction Company Integral Group" – for distorting competition during the purchase of a special permit for the Podhirna quartz sand section near Obukhiv in the Kyiv region in December 2022. In the auction, LLC "ISK Integral Group" won but refused to buy the lot, and the special permit was acquired by LLC "Korkop Mining" at a quarter of the price. ISK "Integral Group" was fined 50,000 UAH, while "Korkop Mining" – 270,000 UAH. Details can be found in the decision of the Administrative Collegium of the Northern MTV AMCU 60/94-р/к dated 11.07.2024. Also, read the NADRA.INFO article on the alienation of the collusive purchased special permit.
• FPE "Kvin" and PE "Osen’ i Ko" – for six auctions, although in only one the private enterprises were the only competitors to each other. Specifically, in March 2021 during the auction for the permit for the Rusavska-3 sandstone section in the Vinnytsia region, "Osen’ i Ko" won with a bid of 305,000 UAH, but "Kvin" bought the permit for 45,000 UAH. PE "Osen’ i Ko" was fined 38,280 UAH, and FPE "Kvin" – 39,438 UAH. More details can be found in the decision of the Administrative Collegium of the Southwestern MTV AMCU 72/64-р/к dated 12.07.2024.
• LLC "Amberbur" and LLC "Khupo Se Trade" – for three auctions where the State Geology and Subsoil Service played off amber sections Netreba (Rivne region), Lopatychi-1, and Lopatychi-2 (Zhytomyr region) in December 2020. During the auctions, one participant offered more than 4 million UAH for the lot, but eventually, another bought the permit for 11-13 times less. There were no external competitors. Both companies were fined 204,000 UAH each. More detailed information can be found in the decision of the Administrative Collegium of the Eastern MTV AMCU 70/110-р/к dated 07.2024.
• LLC "Amberprom" and LLC "Enter Geo Invest" – for four auctions for the sale of amber special permits in the Rivne region for sections Klesiv-2 (February-2021), Mazynska first, Mazynska second, Mazynska third (March-2021). All the lots were played by "Amberprom" and "Enter Geo Invest" among themselves – there were no external competitors. In three auctions, one participant offered over 800,000 UAH for the lot, while another bought it almost three times cheaper. Both companies were fined 272,000 UAH each. More details can be found in the decision of the Administrative Collegium of the Eastern MTV AMCU 70/111-р/к dated 17.07.2024.
• LLC "Amberking" and LLC "Enter Geo Invest" – for auctions for the Zonechka first and Zonechka second sections in the Rivne region in March 2021. "Enter Geo Invest" offered 5.2 million UAH for the lots, but "Amberking" bought them for 346,000 UAH. Both were fined 136,000 UAH each. More details can be found in the decision of the Administrative Collegium of the Eastern MTV AMCU 70/112-р/к dated 17.07.2024.
• LLC "Amber-Group" and LLC "Enter Geo Invest" – fined for collusively buying the Luka section (amber, Rivne region, March-2021) for 68,000 UAH each. More details can be found in the decision of the Eastern MTV AMCU 70/113-р/к dated 17.07.2024.
• LLC "Tokivskyi Granite Quarry" and PE "Tekhinvest MT" – fined for the auction for the sale of a permit for the Southern part of the "Vodopad" plot of the Tokovsky deposit (granite, Dnipropetrovsk region, May-2021) for 68,000 UAH each. Details can be found in the decision of the Southeastern MTV AMCU 54/56-р/к dated 07.2024.
• LLC "Agrokarpaty" and LLC "Zakarpatskavapnyak" – fined for collusively buying a permit for limestone extraction at the Novoselytske deposit (Zakarpattia region) in March 2021. The decision 63/93-р/к dated 12