Alternate Dispute Resolution Law at Ukraine
Ukraine has developed a comprehensive legal framework for Alternative Dispute Resolution (ADR), encompassing arbitration, mediation, and other mechanisms. This framework aims to provide efficient, accessible, and cost-effective alternatives to traditional litigation.
⚖️ Legal Foundations of ADR in Ukraine
1. Arbitration
Ukraine's arbitration laws are primarily governed by the Law of Ukraine on International Commercial Arbitration (1994), which closely follows the 1985 UNCITRAL Model Law. This law facilitates international commercial arbitration and is complemented by the Civil Procedure Code of Ukraine, which addresses procedural issues related to arbitration, including the recognition and enforcement of arbitral awards. The International Commercial Arbitration Court (ICAC) at the Ukrainian Chamber of Commerce and Industry serves as a prominent institution administering arbitration proceedings. Additionally, ad hoc arbitration is permitted, and recent case law has demonstrated the enforceability of ad hoc arbitral awards in Ukraine .
2. Mediation
In December 2021, Ukraine enacted the Law of Ukraine on Mediation, marking a significant step in formalizing mediation as a voluntary ADR mechanism. This law applies to civil, commercial, labor, administrative, and certain criminal disputes, allowing parties to engage in mediation at any stage of a dispute, including before, during, or after court or arbitration proceedings. The law establishes principles such as voluntariness, confidentiality, neutrality, and impartiality for mediators. Mediators are required to undergo a minimum of 90 hours of training and adhere to professional ethical standards. While mediation agreements are not automatically enforceable, they can be recognized and enforced as ordinary commercial contracts if properly executed .
3. Judicial Mediation
Introduced in 2017, judicial mediation allows parties to reach an amicable settlement with the assistance of a judge before the commencement of trial proceedings. If successful, the settlement agreement is approved by the judge and becomes binding. This process aims to reduce the caseload of courts and promote efficient dispute resolution .
4. Other ADR Mechanisms
Ukraine's legal framework does not extensively cover other ADR methods such as expert determination or adjudication. However, these mechanisms are occasionally utilized in specific sectors, particularly in large infrastructure projects and public-private procurement agreements. For instance, FIDIC contracts commonly used in construction projects in Ukraine may include multi-stage dispute resolution processes involving amicable settlement attempts, dispute adjudication boards, and arbitration. While these mechanisms are not explicitly regulated, their use is recognized in practice .
🏛️ ADR Institutions in Ukraine
International Commercial Arbitration Court (ICAC): Operates under the Ukrainian Chamber of Commerce and Industry, administering both domestic and international arbitration cases
Centre for Mediation and Negotiation: Provides mediation services and training, promoting the use of mediation in various sectors.
National Association of Mediators of Ukraine (NAMU): An organization that supports the development of mediation in Ukraine through training, certification, and advocacy.
🌐 International Engagement
Ukraine is a signatory to several international treaties relevant to ADR, including the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and the Singapore Convention on Mediation. These engagements enhance Ukraine's position in the international ADR landscape, facilitating the recognition and enforcement of arbitral awards and mediated settlement agreements across borders .
✅ Conclusion
Ukraine's ADR framework is characterized by a robust legal foundation, institutional support, and active engagement in international ADR conventions. The introduction of the Mediation Law in 2021, along with reforms in arbitration and judicial mediation, reflects Ukraine's commitment to providing accessible and effective alternatives to traditional litigation. These developments position Ukraine as a favorable jurisdiction for ADR, offering parties a range of mechanisms to resolve disputes efficiently and amicably.
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