Jurisdiction(s):
United Kingdom

Ukrainian Supreme Court bars standalone challenges to arbitration clauses, affirms competence-competence and limits court review to set-aside or enforcement proceedings

Published on: 13 November 2024

Published by a LexisNexis Arbitration expert

Legal News

Table of contents

Background
The Supreme Court’s movement toward a pro-arbitration position

Article summary

Background

In 2017, Ukraine introduced a major overhaul of its procedural laws, featuring arbitration-friendly provisions in the revised editions of the Civil Procedure Code of Ukraine (the 'CPC') and the Commercial Procedure Code of Ukraine (the 'ComPC'). These measures sought to uphold the obligatory force of arbitration agreements and to delineate the role of national courts in supporting international commercial arbitration. Yet the new framework did not expressly bar actions aimed at invalidating arbitration agreements. This gap was exploited by unscrupulous debtors to disrupt the proper operation of arbitration in Ukraine. They brought actions in the commercial courts to set aside arbitration agreements, leading to holdups in arbitral proceedings or in the processes for recognising and enforcing arbitral awards, which in turn enabled them to remove their assets. Consequently, commercial courts maintained that they had jurisdiction to examine the merits of claims whose sole request was to declare the arbitration agreement invalid...

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