MTS and Vimpelcom may have problems with licenses in Ukraine
On June 28, Ukraine adopted amendments to the law “On licensing certain types of economic activity”. The adopted amendments expand the conditions under which licenses of companies operating in this country can be revoked, Vedomosti reports . One of these conditions is “an act of documentary evidence of establishing the fact of control (decisive influence) over the activities of a licensee of persons of other states who carry out armed aggression against Ukraine, and (or) whose actions create conditions for the outbreak of military conflict, the use of military force against Ukraine . Since, according to the Ukrainian authorities, Russia falls under the definition of the aggressor state, Russian telecommunications companies operating under license in Ukraine may have problems.
According to the provisions of the law mentioned above, there are only three sectors where the activities of companies controlled from Russia cannot be terminated on the basis of the Law “On Licensing”. These sectors are banking, TV and radio broadcasting, and the production and sale of alcohol, alcohol and tobacco. Thus, telecommunications is an area that is controlled by the said law.
And this is a direct threat to the Ukrainian business of MTS and Vimpelcom Ltd. Natalia Ivaschenko, head of the inter-branch group of Pepeliaev, Goltsblat and Partners law firm, confirms the existence of such a threat. Nevertheless, the expert notes that for the revocation of licenses of Russian companies requires the relevant act of the competent authority.
The lawyer also notes that the provisions of the law are quite general, the document does not clarify what “control over the company” means. And this may be direct ownership of shares, and indirect. If you mean direct ownership, then MTS Ukraine and Kyivstar can work without problems, since the first company is formally owned by the Dutch Preludium BV (and the Luxembourg-based Allegretto Holding, which is controlled by MTS), and the second by Vimpelcom Ltd. registered in Bermuda. In addition, Vimpelcom is not controlled from Russia, since the LetterOne group of Mikhail Friedman, Herman Khan and Alexey Kuz'michev owns 47.85%. And the economic share of LetterOne is higher - 56.2%.
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If indirect control is taken into account, then the work of MTS and Vimpelcom is really under threat, the risk of losing licenses increases.
Anton Bogatov, legal advisor to a foreign telecommunications company, believes that the risks for MTS Ukraine are quite high, since the connection of this company with the Russian shareholder is more obvious.
The presence of Russian control over the Ukrainian company should be checked by the National Commission for Communications Regulation and Informatization of Ukraine. Unfortunately, the representatives of the commission have not yet commented on the situation.
Both companies, MTS and Vimpelcom, have not yet received any complaints from the Ukrainian authorities.
Note also that the amendments to the law, in theory, are also related to other companies operating in such industries as insurance, pharmaceuticals, energy.
According to the provisions of the law mentioned above, there are only three sectors where the activities of companies controlled from Russia cannot be terminated on the basis of the Law “On Licensing”. These sectors are banking, TV and radio broadcasting, and the production and sale of alcohol, alcohol and tobacco. Thus, telecommunications is an area that is controlled by the said law.
And this is a direct threat to the Ukrainian business of MTS and Vimpelcom Ltd. Natalia Ivaschenko, head of the inter-branch group of Pepeliaev, Goltsblat and Partners law firm, confirms the existence of such a threat. Nevertheless, the expert notes that for the revocation of licenses of Russian companies requires the relevant act of the competent authority.
The lawyer also notes that the provisions of the law are quite general, the document does not clarify what “control over the company” means. And this may be direct ownership of shares, and indirect. If you mean direct ownership, then MTS Ukraine and Kyivstar can work without problems, since the first company is formally owned by the Dutch Preludium BV (and the Luxembourg-based Allegretto Holding, which is controlled by MTS), and the second by Vimpelcom Ltd. registered in Bermuda. In addition, Vimpelcom is not controlled from Russia, since the LetterOne group of Mikhail Friedman, Herman Khan and Alexey Kuz'michev owns 47.85%. And the economic share of LetterOne is higher - 56.2%.
')
If indirect control is taken into account, then the work of MTS and Vimpelcom is really under threat, the risk of losing licenses increases.
Anton Bogatov, legal advisor to a foreign telecommunications company, believes that the risks for MTS Ukraine are quite high, since the connection of this company with the Russian shareholder is more obvious.
The presence of Russian control over the Ukrainian company should be checked by the National Commission for Communications Regulation and Informatization of Ukraine. Unfortunately, the representatives of the commission have not yet commented on the situation.
Both companies, MTS and Vimpelcom, have not yet received any complaints from the Ukrainian authorities.
Note also that the amendments to the law, in theory, are also related to other companies operating in such industries as insurance, pharmaceuticals, energy.
Source: https://habr.com/ru/post/292420/
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