Publication date: 08.06.2024
International arbitration in Ukraine: opportunities and challenges
Introduction
International arbitration is an important mechanism for resolving disputes arising in foreign economic activity. It offers an alternative to state courts, ensuring confidentiality, speed and flexibility of the process. In this article, we will analyze the peculiarities of international arbitration in Ukraine, its advantages, disadvantages and main challenges.
Legal framework
The main legal act governing international arbitration in Ukraine is the Arbitration Law of Ukraine:
- The Law of Ukraine "On International Commercial Arbitration": Adopted in 1994, this law is based on the UNCITRAL Model Law on International Commercial Arbitration and defines the legal framework and procedures for arbitration in Ukraine.
- The Civil Procedure Code of Ukraine: Contains provisions on the recognition and enforcement of arbitral awards.
- The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958: Ukraine is a party to this convention, which provides for the international recognition and enforcement of arbitral awards.
Opportunities for international arbitration in Ukraine
Flexibility and efficiency:
- Arbitration allows the parties to determine the procedures, place, language and composition of the arbitral tribunal, which provides greater flexibility than state courts.
- Arbitration proceedings are usually faster, which reduces the cost and time to resolve a dispute.
Confidentiality:
- Arbitration proceedings are confidential, which allows for the preservation of commercial secrets and avoidance of public disclosure.
Specialization:
- Arbitrators may have specialized knowledge and experience in specific industries, which ensures that complex commercial disputes are handled more competently.
International recognition:
- Arbitral awards rendered in Ukraine are recognized and enforced in other countries party to the New York Convention.
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Challenges of international arbitration in Ukraine
Legal uncertainty:
- Despite the existence of a legal framework, some aspects of the arbitration process may remain unregulated or cause legal uncertainty.
Enforcement of arbitral awards:
- Although Ukraine is a party to the New York Convention, enforcement of arbitral awards may face practical difficulties, in particular due to corruption and inefficiency of the judicial system.
Costs:
- The arbitration process can be expensive, especially if the arbitrators and counsel are highly qualified and reputable.
Limited awareness:
- Many Ukrainian companies and lawyers may have a limited understanding of the benefits and procedures of international arbitration, which hinders its use.
International arbitration institutions in Ukraine
The International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry (the ICAC):
- The ICAC is the main arbitration institution in Ukraine for international commercial disputes. It has considerable experience and authority in this field.
The Maritime Arbitration Commission at the Ukrainian Chamber of Commerce and Industry (IAC):
- IAC specializes in dispute resolution related to maritime law and shipping.
