On 17 January 2013 the National Energy Regulatory Commission (the "NERC") adopted Resolution No. 21 approving the Rules on Registration of Administrative Offences and Imposition of Administrative Sanctions (the "Rules").

According to the Ukrainian Code of Administrative Offences an official of the legal entity may be subject to administrative sanctions for failure to comply with NERC's decisions. The Rules establish a procedure NERC's officials must follow in drawing up reports on administrative offences based on the results of inspections. The Rules also establish requirements as to the form and contents of such reports. The NERC reviews administrative cases at its meetings within 15 days upon receipt of the report and related documents.

The NERC may impose administrative sanctions on a manager of the offender company not later than two months from the date on which the offence was committed or discovered.

The Rules also establish requirements as to the form and contents of the NERC's resolution imposing administrative sanctions. Such resolution can be challenged in court within 10 days of issuance.

For further information please contact senior partner Armen Khachaturyan
and associate Yaroslav Petrov