International Commercial Arbitration in Ukraine: Legal Framework & Enforcement Guide
Stanislav Batryn, Managing Partner, Lions Lawyers
Publication
International commercial arbitration plays a central role in resolving cross-border business disputes involving Ukrainian parties. For foreign investors, lenders, and multinational corporations, arbitration offers neutrality, enforceability, and procedural flexibility that national courts may not provide.
Ukraine has developed a legislative and judicial framework largely aligned with international arbitration standards, making it a viable jurisdiction both as a seat of arbitration and as an enforcement venue.
Legislation
The core legal instrument governing arbitration is the Law of Ukraine “On International Commercial Arbitration”(1994).
The statute is largely based on the UNCITRAL Model Law on International Commercial Arbitration, incorporating globally recognised principles such as:
-Party autonomy
-Kompetenz-Kompetenz
-Separability of arbitration agreements
-Limited court intervention
The law applies where:
-Parties have agreed to international arbitration seated in Ukraine, or
-The dispute involves international commercial elements defined by statute
Covered disputes include contractual and non-contractual commercial matters arising from international trade and investment.
1. Arbitration Agreement Requirements
Ukrainian law recognises arbitration agreements concluded in the form of:
Arbitration clauses within contracts
Separate arbitration agreements
Exchange of correspondence (including electronic communications)
The agreement must be in writing, though Ukrainian courts interpret this requirement broadly in line with international practice.
Courts generally uphold arbitration agreements unless:
The clause is pathological or incapable of execution
The subject matter is non-arbitrable
Public policy considerations arise
2. Arbitrability of Disputes
Ukrainian law permits arbitration of most commercial disputes, including:
International sale of goods
Construction and infrastructure
Corporate and shareholder disputes
Financial and loan agreements
Joint venture conflicts
Non-arbitrable disputes typically include:
Insolvency proceedings
Certain competition matters
Public registration disputes
Criminal and administrative matters
3. Arbitration Institutions in Ukraine
The principal arbitral institution is the:
International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry (ICAC)
ICAC administers both domestic-international and fully foreign disputes. It operates under its own Arbitration Rules, aligned with leading institutional standards.
A related specialised body is the Maritime Arbitration Commission (MAC) for shipping disputes.
4. Composition of the Arbitral Tribunal
Parties are free to determine:
Number of arbitrators
Appointment procedure
Qualifications and nationality
Failing agreement, default statutory mechanisms apply.
Ukrainian law guarantees arbitrator independence and impartiality, with challenge procedures available where conflicts arise.
5. Procedural Framework
Arbitration seated in Ukraine offers high procedural flexibility.
Parties may agree on:
Language of proceedings
Governing procedural rules
Evidentiary standards
Hearing formats (including virtual hearings)
In the absence of agreement, the tribunal determines procedure subject to due process principles.
6. Court Assistance and Supervisory Role
Ukrainian courts maintain a supportive — not interventionist — role.
They may assist arbitration by:
Granting interim measures
Securing evidence
Enforcing tribunal orders
Judicial interference is limited to circumstances expressly provided by law.
This reflects Model Law principles and international best practice.
7. Setting Aside Arbitral Awards
Awards rendered in Ukraine may be challenged before Ukrainian courts at the seat.
Grounds for annulment mirror UNCITRAL / New York Convention standards, including:
Invalid arbitration agreement
Lack of proper notice
Excess of tribunal mandate
Procedural irregularities
Public policy violations
Courts cannot review the merits of the dispute.
8. Recognition and Enforcement of Foreign Awards
Ukraine is a contracting state to the 1958 New York Convention.
Foreign arbitral awards are recognised and enforced through Ukrainian courts unless limited refusal grounds apply, such as:
Incapacity of parties
Invalid arbitration agreement
Due process violations
Award not yet binding
Public policy conflict
In practice, Ukrainian enforcement jurisprudence has become increasingly arbitration-friendly.
Once recognised, awards are enforceable via the state enforcement service or private enforcement officers.
9. Interim Measures in Support of Arbitration
Both arbitral tribunals and national courts may grant interim relief, including:
Asset freezes
Evidence preservation
Prohibitory injunctions
This dual mechanism enhances the effectiveness of arbitration involving Ukrainian assets.
10. Ukraine as a Seat of Arbitration
While historically parties preferred foreign seats (London, Paris, Stockholm), Ukraine is gradually emerging as a regional arbitration venue due to:
Legislative alignment with Model Law
Competitive institutional costs
Experienced arbitrator pool
Digitalisation of proceedings
Wartime realities have not halted institutional arbitration operations, though enforcement involving occupied territories presents practical challenges.
11. Strategic Drafting Considerations
Foreign parties contracting with Ukrainian counterparties should carefully structure arbitration clauses addressing:
Seat of arbitration
Governing substantive law
Institution and rules
Language
Enforcement strategy
Poorly drafted clauses remain a major source of jurisdictional litigation.
12. Conclusion
Ukraine’s arbitration framework reflects internationally recognised standards and offers reliable mechanisms for dispute resolution and award enforcement.
For foreign investors, arbitration remains the preferred legal instrument for mitigating transactional risk in Ukrainian projects.
Lions Lawyers - Ukraine
Our Arbitration Practice
Lions Lawyers advises corporations, investors, financial institutions, and commercial actors in complex international arbitration matters involving Ukrainian parties and assets.
We provide:
Drafting and optimisation of arbitration agreements
Representation in institutional and ad hoc arbitration proceedings
Cross-border contract dispute resolution
Post-award enforcement and asset recovery strategy
Recognition and enforcement of foreign arbitral awards in Ukraine
Setting aside and jurisdictional challenge proceedings
Interim measures and asset-freezing applications
Our team combines arbitration advocacy with deep knowledge of Ukrainian court practice, enforcement procedures, and debtor-asset tracing mechanisms.
Early legal structuring of dispute-resolution clauses and enforcement strategy significantly increases the effectiveness of arbitration outcomes and the recoverability of awards.