Bid-rigging in Ukrnafta tenders: companies to pay a 3.2 million hryvnia fine
29 May 06:49
The Antimonopoly Committee of Ukraine has fined two companies 3.2 million hryvnias for collusion while participating in tenders held by Ukrnafta. The tenders concerned the procurement of chemical products, specifically a corrosion inhibitor for highly mineralized water-oil environments.
The total expected value of the procurements was over 53 million hryvnia.
This was reported by "Komersant Ukrainian" citing the AMCU’s decision .
Which companies were fined by the AMCU
The Antimonopoly Committee found violations in the actions of two companies:
- Ukrimpexbud LLC;
- Sintezinzhining LLC.
According to the AMCU, these companies coordinated their behavior while participating in tenders held by “Ukrnafta” in 2024.
The Committee concluded that such actions led to the distortion of procurement results and the elimination of genuine competition among bidders.
Which tenders are involved
The violation concerned three Ukrnafta procurements for chemical products.
They involved the supply of a corrosion inhibitor for highly mineralized water-oil environments. Such substances are used in the oil industry to protect equipment and pipelines from corrosion.
The total expected value of these procurements exceeded 53 million UAH.
What the Antimonopoly Committee Found
During the investigation, the AMCU identified signs of joint preparation by the companies to participate in the bidding.
The agency also noted a convergence of economic interests among the participants. According to the committee’s conclusion, the body of evidence gathered confirmed anti-competitive concerted actions.
In other words, the companies did not compete with each other independently but coordinated their behavior during the tenders. This could have influenced the results of the procurements and deprived the customer of the opportunity to receive a truly competitive offer.
Why collusion in tenders is a violation
Tender collusion is one of the most serious forms of competition violation in public procurement. It occurs when bidders do not compete with each other but agree on their actions in advance.
Such actions can lead to inflated prices, a mere formality of the bidding process, restricted access for other participants, and inefficient use of funds.
That is why the Antimonopoly Committee monitors such cases and can impose fines on companies that coordinate their behavior during tenders.
How much must the companies pay
Following the review of the case, the AMCU imposed fines totaling 3.2 million UAH on Ukrimpexbud LLC and Sintezinzhiniring LLC.
The committee noted that the decision was made due to the establishment of anti-competitive coordinated actions related to participation in Ukrnafta’s procurement.
Companies may lose access to public procurement
The AMCU reminded that, in accordance with the Law “On Public Procurement,” companies held liable for collusion in tenders may be barred from participating in public procurement.
Such a restriction period may last up to three years.
This means that the consequences for violators could be significantly more severe than the fine itself. Losing access to public procurement could significantly impact their future operations, especially if the companies have been actively working with government or large corporate clients.
