Knowledge Base

2025-01-28

Effective Dispute Resolution in Ukraine: Expert Legal Insights

In the current geopolitical climate, conducting business in Ukraine poses unique challenges, including potential disputes with contractors. While these situations are not widespread, it is crucial to approach them with a preventive strategy and effective solutions. Here’s how we, as legal experts, help clients navigate such scenarios.

The Importance of Prevention

The best way to resolve a dispute is to prevent it from occurring. When drafting contracts with Ukrainian contractors, we focus on incorporating robust clauses that minimize risks and misunderstandings. Clear terms and conditions, well-defined deliverables, and dispute resolution mechanisms are key to avoiding future conflicts.

Negotiation: The First Step

Despite preventive measures, disputes can sometimes arise. In such cases, negotiation becomes the first and most critical step. We assist our clients in engaging with contractors or subcontractors to reach an amicable resolution. Our goal is to find a mutually beneficial solution, saving time and resources for all parties involved.

When Negotiations Fail: Arbitration and Legal Action

If negotiations do not succeed, we advise against relying solely on the Ukrainian judicial system, which can be inefficient and unreliable. Instead, we recommend including an arbitration clause in contracts from the outset. This clause allows disputes to be resolved through international arbitration, ensuring impartiality and effectiveness.

In the absence of an arbitration clause, we often pursue legal action in European courts, with Poland being a preferred jurisdiction for many of our clients. Verdicts obtained in European courts can be enforced in Ukraine due to existing international agreements, offering a more reliable path to resolution.

Efficient Execution of Verdicts

Unlike the challenges of obtaining a favorable court decision within Ukraine, executing a verdict in the country is comparatively more efficient. Private execution officers in Ukraine operate with higher efficiency than state-appointed officials, allowing us to enforce judgments effectively.

Our Expertise at Your Service

Navigating disputes in a wartime environment requires specialized knowledge and a strategic approach. Our Ukrainian desk, comprising experts in international law and cross-border disputes, is dedicated to providing reliable support to our clients.

For more information about how we can assist with legal services related to Ukrainian contractors, visit our website.