Merger Control: Exemption for Military & Defense Transactions

On 14 May 2024, the President of Ukraine signed an amendment introducing a temporary exemption from the merger filing requirement for concentrations aimed at the development and production of new technologies and goods for the Ukrainian military industry.

This exemption applies only under the following cumulative conditions:

• The transaction must relate to the development and implementation of technologies and production of military & dual-use goods for Ukraine; 
• The exclusive final recipients and/or purchasers of such technologies and goods must be the Armed Forces of Ukraine, as well as Ukrainian law enforcement and military institutions [including all other Ukrainian authorities that are involved in ensuring national security & defense, and repelling & deterring the armed aggression of the russian federation, or are engaged in combatting terrorism]; and
• The goods or technologies are not developed, implemented, or produced in Ukraine, or their production is insufficient for Ukraine’s defense capability at the time of the concentration’s implementation; and
• The acquirer conducts business activity on the markets of production, sale, or purchase of military & dual-use goods, military services, or development & implementation of military technologies or dual-use goods; 
• The concentration takes place outside the territory of Ukraine.