A fine of 9 million hryvnia: the scandal surrounding Karpatskaya Dzherelna water

6 March 08:29

The Antimonopoly Committee of Ukraine fined Karpatski Mineralni Vody LLC 9,422,082 hryvnia for spreading false information about the origin of Karpatskaya Dzherelna mineral water.

This was reported by "Komersant Ukrainian" with reference to the press service of the AMCU.

Why the case was opened

The investigation began after a consumer complained, questioning whether the water really came from the Carpathians.

During the investigation, the regulator involved experts from

  • National Academy of Sciences of Ukraine
  • Taras Shevchenko National University of Kyiv
  • State Scientific and Production Enterprise “Cartography.”

The experts confirmed that the Pivdenno-Strutynske deposit in the Lviv region, where the water is extracted, does not geographically belong to the Ukrainian Carpathians.

What exactly was recognized as a violation

The AMCU established that the use of the word “Carpathian” in the product name, together with

  • images of mountains
  • fir trees
  • a stylized map of the Carpathians

creates a false impression among buyers about the mountain origin of the water.

According to the regulator, such marketing gives the company an unfair competitive advantage in the bottled water market.

How did the company respond?

Karpatski Mineralni Vody acknowledged the Antimonopoly Committee’s claims.

The manufacturer announced that it plans to change the design of the labels to clearly indicate that

  • “Karpatskaya Dzherelna” is a trademark,
  • and the name does not indicate the geographical origin of the water.

What decision did the AMCU make?

Since products with the previous labeling are still on sale, the committee decided to

  • to impose a fine of UAH 9.4 million
  • to oblige the company to cease violating competition law.

The AMCU emphasizes that manufacturers should not mislead consumers about the characteristics or origin of products.

Where is Karpatskaya Dzherelna produced?

The company’s first plant operates in the village of Strutyn, Zolochiv district, Lviv region. Water production began there in 1996 — at that time, it was a non-alcoholic beverage workshop of a state-owned distillery.

In 2002, the enterprise was reorganized into a mineral water production plant.

According to the company, Karpatskaya Dzherelna water is extracted from

  • from two artesian wells
  • at a depth of about 90 meters
  • near the source next to the plant.

What products does the company produce?

Karpatski Mineralni Vody LLC produces several popular beverage brands:

  • Karpatskaya Dzherelna mineral water
  • Fruktova Dzherelna sweet drinks
  • Sokovinka beverage
  • Dzherelce children’s water
  • Dragon energy drink.

Who are the owners of the company

According to YouControl, the beneficiaries of the company are:

  • Entrepreneur Serhiy Ustenko — 83.77%
  • former Ukrainian politician Petro Ustenko — 16.23%.

Other companies owned by the Ustenko family operate in the following sectors:

  • real estate
  • construction
  • investment

However, the group’s main business remains the production of mineral water.

Дзвенислава Карплюк
Editor

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