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Law Firm News
02.06.2026

Ukraine Expands the Scope of International Arbitration

Ukraine has brought into force a new law that broadens the scope of international arbitration and allows more disputes to be resolved locally rather than abroad.

Until now, Ukrainian arbitration was mainly used for standard commercial contracts. More complex matters - particularly investment disputes involving the state - were typically referred to foreign arbitration centres such as the ICC in Paris, LCIA in London, or SCC in Stockholm.

This is now changing.

Under the new framework, arbitration in Ukraine may also cover disputes between investors and the state, investment-related disputes with a cross-border element, certain capital markets disputes (including bond-related transactions), as well as contracts that involve performance in more than one jurisdiction.

In practical terms, parties are no longer automatically required to turn to foreign arbitral institutions. Where an arbitration clause exists, or where jurisdiction is established under the applicable legal framework, such disputes may now be heard in Ukraine.

The reform is intended to reduce costs, simplify proceedings, and strengthen Ukraine’s position as a viable arbitration seat for international disputes.

A notable feature of the law is its retroactive effect: it applies to arbitration agreements concluded before its entry into force, which means its impact is immediate.

Going forward, state bodies and state-owned enterprises are expected to take this development into account when drafting cross-border contracts, with a greater focus on Ukrainian-seated arbitration.

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