Ukraine

Ukraine has a modern arbitration-friendly legal framework which aligns with international standards.

1.1 Advantages

Ukraine has well-functioning legislation that provides court support for international arbitration and adopts a pro-validity interpretation of arbitration agreements. The rate of setting aside foreign arbitral awards in Ukraine is very low. New York Convention awards are usually enforced with a strong pro-enforcement presumption. Arbitration in Ukraine can be more cost effective and time efficient than in some other jurisdictions in the region, while maintaining high professional standards.

1.2 Disadvantages and common pitfalls

Ukrainian arbitral institutions generally allow appointment only of arbitrators from their recommendatory rosters, which may be perceived as restriction to parties’ autonomy. While the procedural law sets relatively short timelines for court case consideration, in practice, arbitration-related court proceedings in Ukraine often take longer because of frequent power outages and mandatory court breaks due to air-raid sirens, combined with overburdened judges handling a high caseload.

1.3 Distinctive features

In respect of international commercial arbitration, there is a notable rise of arbitration cases in the defence sector as well as agricultural and commodities and shipping disputes involving parties from or linked to Ukraine.

2.1 Legal framework

Arbitration regulation is based on national laws and international instruments (see Sections 2.3–2.5, below). International commercial arbitrations with their seat in Ukraine are mainly governed by the Law of Ukraine “On International Commercial Arbitration” (ICA Law). The Civil Procedure Code of Ukraine (CPC) and the Commercial Procedure Code of Ukraine (ComPC) grant and govern the Ukrainian courts’ powers related to international arbitrations seated in Ukraine.

2.2 What qualifies under domestic law as “international arbitration”? Is there a specific statute?

Under Article 1(2) of the ICA Law, parties may refer to international commercial arbitration:

• disputes arising from foreign trade or other international economic relations, provided that at least one party has its place of business outside Ukraine (Ukrainian judiciary overturned the restrictive interpretation by clarifying that arbitrations with all Ukrainian parties may also be submitted to a foreign seat);
• disputes involving enterprises with foreign investment, international associations, and organisations established in Ukraine, including:
  • disputes between the participants of such entities, between such entities and parties governed by the law of Ukraine.

In addition, certain capital-markets disputes may be referred to international commercial arbitration if they involve a bond issue administrator and issuer or guarantor, if at least one party is an enterprise with foreign investment.

2.3 Ratification of the New York Convention

The New York Convention has been ratified by Ukraine and entered into force on 10 January 1961. Ukraine has made a reservation that it will apply the provisions of the New York Convention in respect of arbitral awards made in the territories of non-contracting states only to the extent to which they grant reciprocal treatment.

In 2015, 2022 and 2023, Ukraine has made three further communications to the Secretary-General of the United Nations in respect to certain limitations to application of the New York Convention related to temporary occupation by the Russian Federation of the Autonomous Republic of Crimea and districts of Donetsk and Luhansk regions and the armed aggression of the Russian Federation against Ukraine.

2.4 Ratification of the ICSID Convention

Ukraine has ratified the ICSID Convention, which has been in force since 7 July 2000.

2.5 Other treaties relating to arbitration

Ukraine is a party to the European Convention on International Commercial Arbitration 1961 (in force for Ukraine since 7 January 1964).

Ukraine is also a party to 67 bilateral investment treaties, the Energy Charter Treaty (ECT) and free trade agreements, containing provisions establishing investor–state arbitration mechanisms.

2.6 Choice of forum for intra-EU dispute settlement

Not applicable.

2.7 Is the municipal law governing arbitration based on UNCITRAL Model Law?

Yes, the ICA Law largely incorporates the 1985 version of the UNCITRAL Model Law.

2.8 Recent amendments or reforms in arbitration laws

The Bill No. 12141 concerning changes to the ICA Law and expansion of its scope has been recommended for and awaits the second and final reading in the Parliament. The Bill No. 12141 proposes to amend the ICA Law by implementing the definition of “international” arbitration from the UNCITRAL Model Law. Under the Bill No. 12141, the International Commercial Arbitration Court (ICAC) at the Ukrainian Chamber of Commerce and Industry (UCCI) will be authorised to hear investor–state disputes and will be named as a forum option in future Ukraine’s investment treaties and state contracts (recommendation).

Ukraine has two main international arbitration institutions and a number of domestic arbitration courts.

3.1 Presence of local arbitration institutions

The two main international arbitral institutions in Ukraine are ICAC and the Maritime Arbitration Commission (MAC) at the UCCI.

3.2 Does the London Court of International Arbitration (LCIA) have a local office?

No, the LCIA does not have a local office in Ukraine.

3.3 Does the Permanent Court of Arbitration (PCA) have a local office?

No, the PCA does not have a local office in Ukraine.

3.4 Does the ICC International Court of Arbitration have a local office?

No, the ICC International Court of Arbitration does not have a local office in Ukraine.

3.5 Does the International Centre for Dispute Resolution (ICDR) have a local office?

No, the ICDR does not have a local office in Ukraine.

3.6 Agreement entered into with local offices of international arbitration institutions

ICC Ukraine may be requested by the ICC International Court of Arbitration (ICC Court) to propose Ukrainian nationals with the required qualifications to serve in an ICC arbitration case.

4.1 Requirements as to content and form

Under the ICA Law, an arbitration agreement may take the form of an arbitration clause in a contract or a separate agreement. The arbitration agreement must be in writing, which is satisfied if it is either in a contract signed by the parties, or in a bond issuance document appointing an administrator, or exchanged via letters, emails, or other recorded means of communication, or implied through an exchange of claim and defence submissions, where one party asserts an arbitration agreement and the other does not object. The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement provided that the contract is in writing and the reference is such as to make that clause part of the contract.

4.2 Validity of arbitration agreements

The ComPC sets the presumption of validity and enforceability of an arbitration agreement. -

4.3 Special formalities

Article 476(4)(2) of the CPC requires that an application for recognition and enforcement of an arbitral award be accompanied by the original arbitration agreement or its notarised copy (if it is not in Ukrainian, a certified translation into Ukrainian shall also be filed). Notarisation of an arbitration agreement concluded via electronic communications could be problematic.

4.4 Governing law

Ukraine recognises the separability of the arbitration agreement from the main contract. As a result, the law governing the arbitration agreement may differ from the law governing the merits of the dispute. Ukrainian legislation, however, does not expressly regulate how the governing law of the arbitration agreement is to be determined where the parties have not expressly chosen one. Article 36(1) of the ICA Law provides that recognition and enforcement of an arbitral award may be refused if the arbitration agreement is invalid under the law chosen by the parties, or, failing such choice, under the law of the seat of arbitration. The same approach is reflected in Article V(1)(a) of the New York Convention. Therefore, Ukrainian law gives significant weight to the law of the seat of arbitration, which is generally treated as the applicable law to the arbitration agreement.

Ukrainian law does not provide a consolidated exhaustive list of disputes that can be submitted to arbitration.

5.1 Applicable restrictions

Article 1(2) of the ICA Law limits what types of disputes can be resolved through arbitration (see Section 2.2, above). Articles 20 and 22 of the ComPC outline categories of commercial disputes that are non-arbitrable and fall within national courts’ jurisdiction. The following disputes shall not be referred to arbitration: disputes over the invalidation of public acts, state registration of rights to immovable property, intellectual property rights, and, with certain exceptions, bankruptcy, corporate matters, competition, et al.

6.1 Stay of proceedings

Under Article 8 of the ICA Law, a court dealing with a claim falling within the scope of a valid arbitration agreement shall, at the request of a party, leave the claim without consideration and refer the parties to arbitration, unless the arbitration agreement is found to be invalid, inoperative or incapable of being performed.

6.2 Anti-suit injunctions

Anti-suit injunctions are generally not recognised or enforceable in Ukraine, as Ukrainian law considers limitations on the right to access to justice invalid.

7.1 Restrictions on the parties’ freedom to choose arbitrators

The ICA Law strongly upholds party autonomy, allowing the parties to agree on key procedural aspects of the arbitration, including the tribunal’s composition, and the procedure for appointing arbitrators. However, the ICAC and the MAC generally allow appointment only of arbitrators from their recommendatory lists.

7.2 Requirement of arbitrator independence and impartiality

Arbitrators must satisfy the core requirements of independence and impartiality.

7.3 Mandatory rules applicable to the appointment process

The parties shall be treated with equality and party autonomy shall be respected.

7.4 Appointment mechanism in the absence of party agreement or applicable institutional rules

In arbitrations seated in Ukraine, if the parties do not agree on the number of arbitrators, a three-member tribunal shall be appointed.

In the absence of an agreement on appointment procedure:

• in a three-member tribunal, each party appoints one arbitrator, and the two appointed arbitrators select the third arbitrator; if a party fails to appoint its arbitrator within 30 days of receiving a request from the other party, or if the two arbitrators fail to agree on the third arbitrator within 30 days of their appointment, the arbitrator is appointed, upon request of either party, by the President of the UCCI; and
• in a sole arbitrator arbitration, if the parties cannot agree on the appointment, the arbitrator is appointed, at the request of either party, by the President of the UCCI.

7.5 Mandatory rules applicable to the replacement process

A substitute arbitrator shall be appointed according to the rules that were applicable to the appointment of the arbitrator being replaced.

7.6 Mandatory disclosure obligations

Before accepting the appointment, arbitrators are required to disclose circumstances which may give rise to justifiable doubts as to their independence and impartiality. An arbitrator, from the time of their appointment and throughout the arbitral proceedings, shall without delay disclose any such circumstances to the parties, unless they have already been informed of them by such arbitrator.

7.7 Grounds for challenge

An arbitrator may be challenged only if circumstances exist that give rise to justifiable doubts as to their impartiality or independence, or if they do not possess qualifications required by the agreement of the parties. Importantly, a party may challenge an arbitrator appointed by it or in whose appointment it has participated only for reasons of which it becomes aware after the appointment had been made.

7.8 Mandatory rules governing the challenge of arbitrators

The parties are free to agree on a procedure for challenging an arbitrator.

Failing such agreement, a party who intends to challenge an arbitrator shall, within 15 days after becoming aware of the constitution of the arbitral tribunal or after becoming aware of any grounds for challenge (see Section 7.7, above), communicate in writing the reasons for the challenge to the arbitral tribunal. Unless the challenged arbitrator withdraws or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge.

If a challenge is not successful, within 30 days after having received the rejection the challenging party may request the President of the UCCI to decide on the challenge and their decision shall not be subject to appeal. While such a request is pending, the arbitral tribunal, including the challenged arbitrator, may continue the arbitral proceedings and make an award.

7.9 Removal

If an arbitrator becomes de jure or de facto unable to perform their functions or for other reasons fails to act without undue delay, their mandate terminates if they withdraw or if the parties agree on the termination. Otherwise, if a controversy remains concerning any of these grounds, any party may request the President of the UCCI to decide on the termination of the mandate and their decision shall not be subject to appeal.

7.10 Liability and immunity of arbitrators

The ICA Law is silent on arbitrator immunity or liability. At the same time, arbitrators in labour disputes and domestic arbitration cases may be held liable under the Criminal Code of Ukraine for certain criminal offences (e.g. for abuse of authority or bribes).

Both the ICAC Rules and MAC Rules include limitation of liability provisions for arbitrators and certain other participants (reporters, tribunal-appointed experts, the institutions and their staff). Arbitrators and such other participants shall not be liable for any act or omission in connection with the arbitral proceedings, unless applicable imperative law provides otherwise.

While interim measures and assistance in preserving evidence for arbitral proceedings are available irrespective of whether the seat of arbitration is in Ukraine or abroad, courts’ assistance in taking evidence is only available for arbitrations seated in Ukraine.

8.1 Interim measures

8.1.1 Overview of interim measures

Under Article 149 of the CPC, Ukrainian courts have powers to grant interim measures in support of international commercial arbitration, including:

• seizure of property and funds;
• prohibition from taking certain actions, including by non-parties;
• suspension of the right to dispose of seized assets; and
• suspension of customs clearance, amongst others.

8.1.2 Relevance of availability of emergency arbitrator mechanism

The emergency arbitrator mechanism is not provided by Ukrainian law. However, a similar tool exists in regulations of two main arbitral institutions: the ICAC/MAC President before the constitution of the arbitral tribunal may upon the written request of either party (if it considers it justified) determine the size and the form of the claim security.

8.2 Taking of evidence

Arbitral tribunal or, upon its consent, a party to the arbitral proceedings may apply to court for judicial assistance in taking evidence.

The court can oblige the person possessing the evidence to produce it directly to the arbitral tribunal or to a party, which has applied to the court, for its further transfer to the arbitral tribunal.

8.3 Appointment or challenge of arbitrators

Ukrainian state courts are not empowered to perform such functions.

8.4 Other available assistance

Under Article 116 of the CPC, courts also aid in preserving evidence, including through witness and expert examination, and disclosing evidence.

9.1 Domestic scope of sovereign immunity from jurisdiction

Under Article 79 of the Law of Ukraine “On International Private Law”, foreign states enjoy absolute immunity in respect of themselves and their property from lawsuits against them, interim measures (such as asset seizure), and execution of court judgments unless the foreign state consents or an international treaty or Ukrainian law provides otherwise.

In recent practice, the Ukrainian Supreme Court maintains that sovereign immunity does not shield Russia from litigation concerning damages caused by armed aggression against Ukraine, thus empowering Ukrainian courts to exercise jurisdiction over such claims notwithstanding established immunity principles.

9.2 Immunity from execution

The Supreme Court found in Everest Estate LLC v. Russian Federation that a state’s consent to arbitration in a bilateral investment treaty may be construed as a waiver of immunity, including from interim relief and execution of a treaty award (see the judgment of the Supreme Court dated 25 January 2019 in case No. 796/165/2018).

The ICA Law provides flexibility. Arbitrators must ensure that each party has a reasonable opportunity to present its case, but they have discretion to determine the procedure and schedule hearings. There is no strict obligation to hold hearings in person at the seat of arbitration. The case can be decided on documents alone if both parties agree, unless one of the parties requests the hearing. If a party does not appear at a hearing or fails to submit evidence, the tribunal may proceed in their absence and make an award based on the available evidence.

The ICA Law does not specifically regulate confidentiality. However, in practice, arbitral proceedings seated in Ukraine are treated as confidential and arbitral awards are not published.

Under the ICAC Rules, unless the parties agree otherwise, the proceedings and all related activities concerning the case are confidential. Furthermore, both the tribunal and the parties are required to maintain the confidentiality of any documents submitted, including by non-parties, and not publicly available.

12.1 Requirements as to content and form

Under Article 31 of the ICA Law, an arbitral award must be in writing and signed by arbitrators. For a panel of arbitrators, a majority of signatures is sufficient, provided the reason for any missing signature is explained. The award must contain reasoning, the final decision on the claims, allocation of arbitration costs and fees, their distribution between the parties, the date of the award, and the place of arbitration.

12.2 Time limit

The law of Ukraine does not impose a time limit for rendering an award.

At the same time, both the ICAC Rules and the MAC Rules state that arbitral award shall be rendered within 30 days from the date of closure of the proceedings (subject to extension in exceptional cases).

12.3 Remedies

There are no limitations on the types of remedies that an arbitral tribunal may award under Ukrainian law.

13.1 Interpretation and correction of awards

Under the ICA Law, a party may request a correction or interpretation of the award within 30 days of receiving it, unless the parties have agreed on a different term. If the tribunal finds the request justified, it must correct or clarify the award within 30 days of receiving the request. Additionally, the tribunal may, at its own initiative, correct errors within 30 days from the date of the award.

13.2 Challenge of an award

The ICA Law contains an exhaustive list of grounds for setting aside an award:

• if the party making the application furnishes proof that:
  • a party to the arbitration agreement lacked legal capacity; or the arbitration agreement is not valid under the applicable law or, failing any indication of the law, under Ukrainian law;
  • the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present its case;
  • the award deals with a dispute that was not covered by the arbitration agreement or covers matters beyond its scope; or
  • the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was in conflict with a mandatory provision of the ICA Law or, failing such agreement, was not in accordance with the ICA Law; or
• if the court finds that:
  • the subject matter of the dispute is not capable of settlement by arbitration; or
  • the award is contrary to the public policy of Ukraine.

A request to set aside an award may not be filed later than three months from the date the party making the request received the arbitral award. In 2023, Article 454(7) of the CPC was amended giving courts discretion to restore the missed deadline for filing a setting-aside application if the applicant demonstrates that the delay was justified.

13.3 Recognition and enforcement proceedings

Most foreign arbitral awards are recognised and enforced pursuant to the New York Convention.

Under the CPC, an application to recognise and enforce an arbitral award must include: an original arbitral award (or a duly certified copy) and an original arbitration agreement (or a duly certified copy), along with certified translations into Ukrainian (if applicable). The time limit for applying for recognition and enforcement is three years from the date when the arbitral award was made. The court may renew this period if it finds the reasons for missing it to be valid. International arbitral awards can be recognised and enforced in Ukraine only if a debtor is located/resides in Ukraine, or if the debtor’s assets are in Ukraine.

13.4 Cost of enforcement

In 2026, the court fee payable for a writ of execution in Ukraine of a foreign arbitral award is approximately EUR 34 for applicants — legal entities and EUR 13 for applicants — individuals.

13.5 Enforcement of orders of emergency arbitrators

Although Ukrainian courts have not objected to the enforcement of emergency arbitrator awards in principle and have applied the New York Convention, their enforceability remains uncertain.

14.1 Process for enforcing New York Convention awards

For the procedure see Section 13.3, above.

14.2 Grounds for resisting enforcement of New York Convention awards

A competent Ukrainian court may refuse recognition and enforcement of a foreign arbitral award on the grounds set out in Article V of the New York Convention, which are largely mirrored in the CPC and the ICA Law (applicable where the New York Convention does not apply). These grounds are exhaustive, though some are subject to broad interpretation. More specifically, public policy remains one of the most frequently, although somewhat inconsistently, invoked grounds for resisting enforcement of arbitral awards in Ukraine. For example, awards involving sanctioned parties or rendered in favour of a legal entity of the aggressor state and/or the occupying state aimed at collecting debt from a Ukrainian defence industry enterprise were denied recognition and enforcement.

When considering an application for recognition and enforcement, the court does not review the merits of the award. Its examination is limited to verifying compliance with applicable procedural requirements and determining whether any grounds for refusal are present.

14.3 Enforcing non-Convention awards

If a non-Convention award is made in a jurisdiction that does not have a relevant international treaty with Ukraine, Ukrainian courts may allow recognition and enforcement of the award under the principle of reciprocity. Article 474(2) of the CPC assumes that there is reciprocity unless a party can prove otherwise. For the procedure, see Section 13.3, above.

There is no separate document exclusively governing arbitration ethics.

15.1 Applicable to counsel

Ukrainian law does not impose specific professional standards for counsel in arbitration. Counsel, who are members of the Ukrainian Bar, would be bound by the respective code of ethics and other rules applicable to attorneys-at-law.

15.2 Applicable to arbitrators

There are no statutory codes of ethics that apply to arbitrators in Ukraine. Arbitrators are expected to uphold fundamental standards such as impartiality and independence. The IBA Guidelines on Conflicts of Interest in International Arbitration are frequently used for guidance to reflect best practice.

16.1 Applicable regulatory requirements

Ukrainian law does not prohibit third-party funding. There are no statutory requirements for parties to disclose the existence or identity of a funder to an arbitral tribunal, or the other party, or an arbitral institution.

16.2 Overview of the third-party funding market

Arbitration funding is not popular in Ukraine.

17.1 Types of specialist arbitration

The MAC specialises in resolving shipping and maritime disputes, including charter party, cargo, and ship finance claims. The MAC provides rules and procedures tailored to maritime commerce, reflecting international standards, and serves as a key forum for maritime arbitration in the region.

17.2 Key legal principles

Maritime arbitration in Ukraine follows the same general principles set out in the ICA Law.

17.3 Types of claim and defences typically brought in that area

MAC settles disputes that arise out of relations concerning the affreightment of vessels, the carriage of goods by sea, and the carriage of goods in mixed navigation (river-sea), the maritime towage, the marine insurance and reinsurance, the repair of seagoing vessels, their sale and mortgage, the agenting of vessels, their salvage as well as the infliction of damage to port installations, navigational aids and other objects, in particular caused by collision.

17.4 Issues and strategic considerations to take note of

According to MAC’s website, approximately 38.5% of cases are resolved in under three months, and 69.3% in under six months.

In respect of international commercial arbitration, parties are increasingly selecting Ukraine as the seat for ad hoc arbitrations or those under foreign institutional rules. In these cases, national courts (if requested) provide judicial assistance during and after the proceedings.

Two clear trends have also emerged in investor–state cases. The first is Ukrainian investors bringing claims against Russia that arose from losses of investments in Crimea, with more recent expansion to investments in the Eastern Ukraine. The second trend involves claims brought by investors affiliated with Russia but domiciled in third countries, challenging Ukraine’s sanctions, emergency measures, and regulatory actions implemented in response to the Russian invasion.