Commercial Disputes Case Law

Key Ukrainian court decisions affecting foreign companies, investors and cross-border commercial relationships.

Payment Made Before Transfer of Ownership Is an Advance Payment
Stanislav Batryn Stanislav Batryn

Payment Made Before Transfer of Ownership Is an Advance Payment

The Supreme Court of Ukraine clarified that payment for goods is an advance payment where, under the contract, it must be made before ownership passes from the seller to the buyer. Failure to make that payment does not itself terminate the contract; the right arising from non-payment to terminate belongs to the seller.

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Returning an Advance Payment Does Not Automatically Terminate the Obligation to Supply Goods
Stanislav Batryn Stanislav Batryn

Returning an Advance Payment Does Not Automatically Terminate the Obligation to Supply Goods

The Grand Chamber of the Supreme Court held that a seller’s unilateral return of an advance payment does not necessarily terminate its obligation to supply the goods. The result depends significantly on the buyer’s response: acceptance without objection may terminate the parties’ obligations, while a prompt and unequivocal objection may preserve the buyer’s right to demand delivery.

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An Export Operation Occurs When the Goods Actually Cross Ukraine’s Customs Border
Stanislav Batryn Stanislav Batryn

An Export Operation Occurs When the Goods Actually Cross Ukraine’s Customs Border

The Supreme Court held that the decisive moment of an export operation, including the supply of goods, is the actual crossing of Ukraine’s customs border. The distinction between the customs declaration date and the physical export date can determine whether sanctions for violating foreign-currency settlement deadlines are lawful.

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VAT Included in a Supply Contract Cannot Be Challenged Where the Statutory Conditions for VAT Exemption Were Not Met
Stanislav Batryn Stanislav Batryn

VAT Included in a Supply Contract Cannot Be Challenged Where the Statutory Conditions for VAT Exemption Were Not Met

The Supreme Court held that VAT was lawfully included in a supply contract where the statutory conditions for VAT exemption were not satisfied. The Joint Chamber also clarified that VAT is not a contractual price term freely determined by the parties and departed from its earlier approach to partial invalidity of VAT provisions.

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A Contract for Goods Intended for Household Use Is a Sale Contract, Not a Supply Contract
Stanislav Batryn Stanislav Batryn

A Contract for Goods Intended for Household Use Is a Sale Contract, Not a Supply Contract

The Supreme Court of Ukraine held that an agreement between an individual and an entrepreneur for prepaid goods intended for household use constitutes a sale contract rather than a supply contract. Where no delivery date is agreed, failure to deliver within seven days after the buyer’s demand may justify termination, repayment of the advance and interest.

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