Recognition and Enforcement of Investment Arbitration Awards in Ukraine
⚖️ JKX Oil & Gas PLC v Ukraine
📂 Case Details
Case Title: JKX Oil & Gas PLC v Ukraine
Case No.: 824/22/19
Court: Kyiv Court of Appeal
Date: 16 September 2019
Legal Area: Investment Arbitration – Recognition and Enforcement
Arbitration Rules: UNCITRAL Arbitration Rules (ad hoc, London seat)
Background of the Dispute
In 2017, a London-seated UNCITRAL arbitral tribunal issued an award partially upholding the claims of JKX Oil & Gas PLC, a UK investor, against Ukraine.
The tribunal found Ukraine in breach of the UK–Ukraine Bilateral Investment Treaty (BIT) of 1993 and ordered it to pay approximately USD 12 million and to ensure that investors could freely transfer dividends in US dollars out of Ukraine, notwithstanding any local currency restrictions.
Following Ukraine’s unsuccessful attempt to set aside the award in London, JKX applied to the Kyiv Court of Appeal for recognition and enforcement in Ukraine.
The Court’s Decision
The Kyiv Court of Appeal:
Partially recognised and enforced the UNCITRAL award;
Allowed recovery of compensation from Ukraine; and
Confirmed Ukraine’s obligation (but not the National Bank of Ukraine’s) to ensure free transfer of dividends.
The Court rejected Ukraine’s objections based on Article V of the New York Convention, Article 36 of the Law on International Commercial Arbitration, and Article 478 of the Civil Procedure Code, finding no violation of due process or public policy.
The Court did, however, agree that the arbitral tribunal exceeded its powers by extending obligations to the National Bank of Ukraine, which was not a party to the arbitration agreement.
Why This Decision Matters
This ruling demonstrates a positive approach by Ukrainian courts to enforcing investment arbitration awards against the state.
It shows that:
Ukrainian courts can be a viable forum for recognition and enforcement of arbitral awards;
Investors should carefully frame their non-monetary relief in a way that binds only the state, not its independent bodies;
Ukrainian courts respect international obligations under BITs, reinforcing Ukraine’s credibility as an arbitration-friendly jurisdiction.