On 30 April 2025, the Verkhovna Rada of Ukraine adopted in the first reading the Draft Law of Ukraine No. 12141 “On Amendments to the Law of Ukraine “On International Commercial Arbitration”, expanding the competence of international arbitration”, submitted by members of Parliament Mykola Stefanchuk, Ivan Kalaur, Roman Babiy and others.

The ICAC notes the importance of the Draft Law for the development of Ukraine as an attractive jurisdiction for international commercial and investment disputes, which will improve its image in the international arena and contribute both to the development of the legal services market and the inflow of investments to Ukraine.

The amendments proposed by the Draft Law are aimed at expanding the competence of the international commercial arbitration with the seat in Ukraine as follows. 

Firstly, the Draft Law introduces a broader understanding of the concept of an “international dispute” and the implementation of the relevant provisions of the UNCITRAL Model Law. Undoubtedly, such new criteria of the international nature of the dispute as the place of arbitration, the place where most of the obligations are fulfilled; the place with which the subject matter of the dispute is most closely connected, and the parties’ explicit agreement that the subject matter of the arbitration agreement is connected with more than one country will expand the range of legal relations, disputes over which will be subject to arbitration and which are currently outside its jurisdiction.

Secondly, the Draft Law contributes to developing Ukraine as a place for investment arbitration. As a result Ukraine should become a place of arbitration for investment disputes between investors and Ukraine or another state. International practice of investment dispute resolution shows that the key issue in their consideration is the challenge of competence based on the provisions of national arbitration law. Thus, amending the Law “On International Commercial Arbitration” to include investment disputes within the jurisdiction of international commercial arbitration, if the place of arbitration is Ukraine, will contribute to legal certainty, and mitigate the risks of setting aside of arbitral awards and refusing to recognize them.