Background

On 28 April 2026, the Ukrainian Parliament has modified the International Commercial Arbitration Law of Ukraine (the Law) by introducing the following three key changes:

  • it has expanded the definition of the “international dispute” to align the Law with Article 1(3) of the UNCITRAL Model Law in that respect;
  • it has explicitly recognised that investor-state disputes fall within the competence of international commercial arbitration seated in Ukraine;
  • it has reformed the appointing-authority architecture.

On 19 May 2026, the Law was signed by the President of Ukraine.

1. Expanded Scope of the “International Dispute”

Now, a dispute qualifies as “international” not only when at least one party’s place of business is located abroad, as provided initially, but also when the parties have expressly agreed that the subject matter of the arbitration agreement is connected with more than one state, or when at least one of the following places lies outside the state in which the parties have their places of business:

  • the seat of arbitration, if determined in or pursuant to the arbitration agreement;
  • any place where a substantial part of the obligations arising out of the contractual or other civil-law relationship is to be performed; or
  • the place with which the subject matter of the dispute is most closely connected.

Related modifications were also made to the Regulation on the International Commercial Arbitration Court (the ICAC) at the Ukrainian Chamber of Commerce and Industry (the UCCI).

2. Investor–State Disputes

The Law now expressly provides that the ICAC shall also hear disputes between an investor (or another participant in investment activity) and a state (its bodies and institutions) or an intergovernmental organisation, arising in connection with investment activity carried out in Ukraine or in another state, where the dispute is submitted to arbitration on the basis of an international treaty, a law of Ukraine, another normative legal act, or an agreement of the parties contained in a contract or other document.

3. Appointing Authority Reform

Until now, the President of the UCCI exercised such functions as appointing arbitrators, deciding on challenging appointed arbitrators, and deciding on the termination of mandate. Under the amendments, this function is split as follows:

  • for ad hoc arbitration, those functions continue to be exercised by the President of the UCCI;
  • for permanent arbitral institutions, those functions are exercised by the body designated in the rules of the relevant institution.

4. Effect on Existing Arbitration Agreements

The above modifications concerning the expanded competence of international arbitration also apply to arbitration agreements concluded before the modifications to the Law become effective. Parties to existing contracts, therefore, do not need to modify their arbitration clauses to benefit from the new jurisdictional scope.

5. Practical Considerations

  • Ukrainian counterparties whose contract is largely performed abroad, or who select a foreign seat, can now agree to have their dispute decided by international commercial arbitration. The Ukrainian Supreme Court had already moved in this direction in its 1 November 2023 Grand Chamber resolution in Berezansky Processing Plant v Grain Power (case No. 910/3208/22, para. 9.20), confirming that two Ukrainian entities may validly refer their dispute to a foreign-seated arbitration where a foreign element is present.
  • Ukraine can now be a forum for investment disputes.
  • In future bilateral investment treaties and free trade agreements, Ukraine will propose the ICAC at the UCCI as a dispute-resolution option as a matter of state policy.

6. Why it Matters

This is a significant step in modernising Ukraine’s dispute resolution framework. By explicitly bringing investor-state disputes within the competence of domestic arbitral institutions, Ukraine strengthens its attractiveness as a destination for foreign investment at a critical moment of post-war reconstruction.

For our clients, both investors operating in Ukraine and parties to cross-border commercial arrangements, the expanded jurisdictional reach of Ukrainian arbitration offers new strategic options when structuring dispute resolution clauses. 

7. Contact Us

AMV Law Offices has extensive experience in international investment and commercial arbitration and stands ready to advise on the implications of this reform for specific transactions and disputes. For advice on how these changes affect your investments, contracts, or dispute resolution strategy, please contact the team at [email protected].