Cartels: how to avoid becoming a participant?

What is a cartel?

A cartel is an agreement between companies which leads to:

• fixing certain prices;
• market allocation by territory, sellers, product range or clients;
• restriction of production of goods;
• refusal to cooperate with certain partners.

How is the existence of a cartel established?

To establish the existence of a cartel, it is sufficient to demonstrate:

• the presence of an oral or written agreement;
• the existence of competitive relations between the cartel participants;
• the feasibility of carrying out the agreement reached;
• its orientation towards achieving the objectives listed above;
• the actual or potential consequences of such an agreement.

What sanctions face cartel participants?

Administrative liability:

• fine for individuals — from 20 to 100 MCI (monthly calculation indices);
• fine for sole proprietors — from 100 to 200 MCI;
• fine for legal entities — turnover-based fine of up to 10% of the annual revenue from sale of goods for the calendar year, but not less than 400 MCI.

MART practice

In recent years, the Ministry of Antimonopoly Regulation and Trade (MART) has successfully uncovered several cartels.

In 2021, MART uncovered the first cartel in the plant protection products market. In 2024, MART uncovered a cartel in the veterinary pharmaceuticals market.

In August 2025, MART uncovered another cartel of four companies which divided the wholesale market for plant protection products on a territorial basis.

How to protect your business?

A cartel may arise even from minor deviations from the principles of fair competition — the risk exists for all market participants, particularly when allocating clients or setting prices.

If you have questions about permissible forms of cooperation or would like to assess antimonopoly risks in your business activities, the lawyers of REVERA are ready to assist.

Authors: Iryna Andryieuskaya, Matsvei Shastsiarniou.