The Rada has expanded the scope of international arbitration: what disputes will businesses be able to resolve
The Verkhovna Rada has adopted amendments to the Law “On International Commercial Arbitration”, which expand the scope of international arbitration.
This refers to legislative initiative No. 12141.
According to Ukrinform, it was supported by 291 MPs.
The key change lies in expanding the list of disputes that arbitration institutions may hear.
International arbitration will now be able to resolve not only traditional foreign trade disputes.
Its jurisdiction may also include investment disputes with the state and corporate disputes involving enterprises with foreign capital.
The International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry noted that investment disputes related to investment activities in Ukraine or abroad may be referred to international arbitration with the seat of arbitration in Ukraine.
The basis for this may be an international treaty, a law, another regulatory act or an agreement between the parties.
Such disputes may be heard in accordance with the rules of both Ukrainian and foreign arbitration institutions.
For businesses, this means a wider choice of mechanisms for protecting their rights.
Companies and investors will be able to use international arbitration more frequently as an alternative to state courts in disputes relating to investments, corporate relations and international economic activities.
The ICAC believes that the adopted amendments should enhance the level of legal certainty in investment relations and confidence in Ukraine as a jurisdiction open to investment.
The law is also significant for Ukraine’s post-war recovery.
The ICAC emphasises that updating arbitration legislation could be crucial for attracting investment in infrastructure, energy, industry, defence and other strategic sectors of the economy.
Furthermore, the amendments are viewed as part of the reforms within the negotiation process regarding Ukraine’s EU membership.
The ICAC describes this law as important for the development of arbitration infrastructure and the promotion of Ukraine as an arbitration venue.
The current Law “On International Commercial Arbitration” provides that disputes arising from contractual and other civil law relationships in the sphere of foreign trade and other international economic relations may be referred to arbitration if the commercial enterprise of at least one of the parties is located abroad.
Furthermore, current legislation already permits the referral to arbitration of disputes between enterprises with foreign investment, international associations and organisations established in Ukraine, between themselves and their participants, as well as their disputes with other legal entities in Ukraine.
The adopted amendments are intended to expand these possibilities and make international arbitration more accessible for investment-related disputes.
The adopted law also expands access to free legal aid for victims of war-related sexual violence.
For businesses, the main practical outcome is that more disputes can be resolved not only through state courts but also through international arbitration.
For Ukraine, this also sends a signal to investors: the state is expanding the legal instruments for investment protection and seeking to strengthen confidence in its jurisdiction.
As reported by ThePublic, the assets of the ‘Kyiv Radio Plant’ were illegally sold for more than 20 times less than their market value
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