The Cabinet of Ministers of Ukraine supported the arbitration courts bill

On January 29, 2020, the Cabinet of Ministers of Ukraine, on its session, supported the draft law "On amending certain laws of Ukraine (regarding the improvement of the procedure of creation and activities of arbitration courts to restore the trust in the arbitration proceedings)" and submitted it to the Parliament for further consideration.

To ensure the effective arbitration proceedings, the bill strengthens the requirements to the organizations which are allowed to establish permanent arbitration courts and broadens the mandate of arbitration self-governance bodies

In particular, the draft law envisages:
  • changing the procedure of the state registration of arbitration courts;
Namely, it designates the Ministry of Justice of Ukraine to be a sole state registration body for permanent arbitration courts (currently, such a function may be performed by other bodies, in addition to the Ministry of Justice);
  • strengthens the requirements to the organizations which are allowed to establish arbitration courts;
Such organizations should be non-for-profit and registered with the State Registry of non-profit organizations. The duration of their activities since their state registration and until the delivery of a decision to establish an arbitration court should exceed five years.
  • broadens the mandate of the Arbitration Chamber of Ukraine;
It will be mandated to establish the compliance of the founder of a permanent arbitration court with the legal requirements.
  • amends the jurisdiction of arbitration disputes;
The consideration of real estate-related disputes by arbitration courts would become possible. The related legal provision is to become effective in three years upon the adoption of the law.

– The bill was developed with the active participation of experts in the field of arbitration. It takes into consideration the research conducted in 2018 by DEJURE Foundation and is based on the draft law which was debated in several public and academic discussions.

The updated law comprehensively addresses the problem of the popularization of arbitration proceedings, as it aims to become the basis for the creation of arbitration courts under reputable organizations, trusted by business and the general public.

We hope that the Parliament would expediently adopt the law and that soon we would benefit from a good-quality alternative to state courts which could reduce the heavy caseload of the latter.

Taras Shepel

Member of the Board of DEJURE Foundation, Chairperson of the Arbitration Chamber of Ukraine