The Law is designed to enhance the attractiveness of Ukraine as a pro-arbitration jurisdiction by harmonising national legislation with the UNCITRAL Model Law, broadening the scope of disputes that may be referred to international commercial arbitration, and establishing a legislative framework for the resolution of investment disputes.
May 2026
On 28 April 2026, the Verkhovna Rada of Ukraine passed Draft Law No.12141 "On Amendments to the Law of Ukraine On International Commercial Arbitration Regarding the Expansion of the Jurisdiction of International Arbitration".
KEY CHANGES
1. Broadening of the categories of commercial disputes which may be submitted to international commercial arbitration
The new Law expands the criteria determining whether a dispute falls within the jurisdiction of international commercial arbitration. Disputes arising from contractual and other civil-law relationships in the context of foreign trade and other forms of international economic activity may now be referred to arbitration not only where a place of business of one of the parties is located abroad (as provided under the current version of the Law of Ukraine on International Commercial Arbitration), but also where:
one of the following places is situated outside the State in which the parties have their places of business:
- the place of arbitration, if determined in or pursuant to the arbitration agreement;
- any place where a substantial part of the obligations arising from the contractual or other civil-law relationship is to be performed;
- the place with which the subject matter of the dispute is most closely connected; or
the parties have expressly agreed that the subject matter of the arbitration agreement relates to more than one country.
The current version of the Law of Ukraine on International Commercial Arbitration does not specify the point in time at which the location of the parties' places of business is to be assessed. The new Law clarifies that the existence of a place of business is to be assessed at the date of conclusion of the arbitration agreement.
The Law also preserves, as separate categories of disputes which may be submitted to international commercial arbitration, disputes involving enterprises with foreign investment and international associations and organisations, as well as disputes involving a bond issue administrator.
Important: Retroactive Effect
The amendments also apply to arbitration agreements concluded before the Law enters into force. Accordingly, arbitration agreements in respect of disputes that could not previously be referred to international commercial arbitration under the existing regulatory framework will, upon entry into force of the Law, be valid and enforceable to the extent that they comply with the new regulatory requirements.
2. Jurisdiction of the ICAC at the Ukrainian Chamber of Commerce and Industry over investor-State disputes
A fundamental change introduced by the Law is that the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce (“ICAC”) and Industry now may have jurisdiction over disputes involving an investor (or other participant in investment activities) and the State (its bodies and institutions) or an intergovernmental organisation, in connection with the carrying out of investment activities on the territory of Ukraine or another State.
The basis for referring such disputes to the international commercial arbitration may be an international treaty, a law of Ukraine or other regulatory act, or an agreement between the parties contained in a contract or other document.
To encourage use of the ICAC for the resolution of investment disputes, the Law directs the Cabinet of Ministers of Ukraine to:
include the ICAC as one of the options for the resolution of investor-State investment disputes when preparing new bilateral investment treaties (BITs) and free trade agreements with investment provisions, and when reviewing existing agreements;
recommend that State enterprises and institutions include in their international commercial contracts arbitration clauses designating national permanent arbitral institution as one of the options for the resolution of investment disputes.
Corresponding amendments on jurisdiction of the ICAC have also been made to the ICAC Regulation.
3. Differentiation of the functions of the administering authority in arbitration
The Law differentiates the authority which performs appointing and administrative functions in arbitration depending on the type of arbitration proceedings. In ad hoc arbitration, those functions are to be performed by the President of the Ukrainian Chamber of Commerce and Industry; in institutional arbitration – by the authority designated by the rules of the relevant arbitral institution.
The appointing and administrative functions comprise: the appointment of arbitrator(s) where the parties have failed to reach agreement or where the composition of the arbitral tribunal cannot be constituted in the manner agreed by the parties; the consideration of appeal to a decision rejecting the challenge; and the appointment of a substitute arbitrator where an arbitrator is unable to perform his or her functions or fails to do so for any other reason.
