The Future of International Arbitration in Ukraine
Stanislav Batryn
Lions Lawyers,
Managing Partner
PhD in Law, Attorney-at-Law
Commercial Law, Litigation, Arbitration
General Overview
Currently, Ukraine may be characterised as an arbitration-friendly jurisdiction, ensuring swift recognition and enforcement of foreign arbitral awards and honouring its commitments under the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Much has been said and done to improve the qualitative standards of the national court system. However, when it comes to international commitments in the field of arbitration, Ukraine—since the establishment of the newly organised Supreme Court in 2017—has demonstrated a consistent application of the best-known arbitration standards within its national legal system.
It is also important to note that the judicial reform of 2017 not only reinstated the main judicial institutions but also enhanced the role of precedent in Ukraine. Although many legal professionals still do not categorise Ukraine’s legal system as being similar to those of the UK or the USA, the reform introduced a noteworthy phenomenon: lower courts must now follow not only the law but also the interpretative guidance of the Supreme Court regarding the application of substantive and procedural law in similar cases.
This step has brought about tremendous changes, directly affecting, among other areas of law, the field of arbitration. In our opinion, and according to our clients’ observations, since 2017 the country has made a significant step towards strengthening the trust of foreign partners regarding arbitral procedures and the enforcement of foreign arbitral awards in Ukraine.
Legal Framework
Ukraine’s legislation on international arbitration comprises both national and international legal instruments. Since the Constitution of Ukraine incorporates international treaties into the national legal system, courts apply the New York Convention and similar international agreements directly when handling relevant cases.
To summarise, national courts in Ukraine apply: the New York Convention (1958), the Law of Ukraine on International Commercial Arbitration, and the Civil Procedure Code of Ukraine, which regulates:
court assistance to arbitral tribunals,
judicial control over arbitral proceedings, and
the recognition and enforcement of foreign arbitral awards in Ukraine.
Application of law
Recognition of foreign arbitral awards is a relatively straightforward process in Ukraine. Over the past eight years, we have witnessed how the Supreme Court has reshaped the landscape of arbitration in Ukraine, significantly increasing confidence in the national legal system.
As the saying goes, actions speak louder than words, and the list below illustrates several precedents recently developed in Ukraine concerning the application of internationally recognised arbitration principles, while also reflecting certain features specific to the Ukrainian legal framework.
Good Faith in Arbitration
Source: High Commercial Court – Supreme Court of Ukraine, Decision of 09 October 2025, Case No. 910/10001/24
The Supreme Court agreed with the respondent company that the claimant: (i) being aware of the existence of an arbitration clause in the contract, nevertheless applied to a national court and therefore should have understood that the claim was submitted to a forum other than the one agreed upon by the parties; (ii) taking into account the outcome of the appellate review, should have anticipated the likelihood of an unfavourable decision at the cassation stage. Despite this, he initiated cassation proceedings, reiterating arguments that had already been addressed by the lower courts.
Furthermore, in its judgment the Supreme Court stated: “The parties in this case voluntarily entered into a contract containing an arbitration clause. The respondent, as a foreign investor, had reasonable expectations that any disputes arising from the contract would be resolved in international arbitration under English law. The subsequent conduct of the claimants, however, was inconsistent with their earlier agreement to arbitrate and demonstrated bad faith — conduct that is impermissible”.
Conclusion: The Supreme Court supports the application of the principle of the duty of good faith in observing arbitration agreements. Parties that willingly agree to arbitrate disputes cannot later disregard that commitment by resorting to domestic courts or by using the national court system to the detriment of a foreign investor. This decision aligns Ukraine with global arbitration standards, strengthens the predictability of enforcement, and confirms that Ukraine’s judiciary now plays an active role in promoting arbitration integrity and investor confidence.
Topics
Procedural requirements: Application for Permission to Enforce a Foreign Court Judgment
Procedural requirements: Consideration of an Application for Permission to Enforce a Foreign Court Judgment
Grounds for Refusal to Grant Permission for the Enforcement of a Foreign Court Judgment
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