Modern approaches to state aid: Ukraine

In recent years competition clauses (including the unique EU State aid rules) have been introduced into EU trade Treaties and in particular, the EU is developing a neighbourhood policy where trade should be open but on the same, or very similar regulatory terms as EU internal policies. One of the most advanced forms of competition clauses being used in a trade Treaty is the EU-Ukraine Association Agreement 2014 together with the Deep and Comprehensive Free Trade Agreement 2016. In particular Ukraine must establish a similar form of State aid control to the model used internally in the EU, linking the concepts of competition and market access. Within a relatively short period of time Ukraine has created a State aid unit within its Antimonopoly Committee (AMC) and this unit is responsible for scrutinizing and investigating a very large number of State aid notifications with a very small and inexperienced staff. This Article examines how the regulation of State aid has been transformed in Ukraine, contributing to an internal modernization of industrial policy, allowing for greater transparency and scrutiny of the use of public finances in Ukraine. In so doing, the Article identifies the challenges already faced by the AMC and the potential for improving the system of State aid control in Ukraine. Keywords: Ukraine; Industrial policy; Association Agreement; EU trade policy.