Ukraine’s legal and business environment continues to be shaped above all by the war, but several recent developments in defense procurement, exports, enforcement, investment regulation, reconstruction, and civil justice reform are also drawing close attention from the market, according to AMV Law Offices Partner Olexander Martinenko.
“The war remains the defining issue for the country’s legal and commercial landscape,” Martinenko begins. One of the most important recent developments has been the streamlining of state procurement for armaments and other defense-related goods. “The market has been closely watching the fact that, as of the beginning of 2026, authority in this area has finally been consolidated within the Defense Procurement Agency, a special organization subordinated to the Ministry of Defense,” he says. “Previously, the general disorganization of public procurement in this sphere created a great deal of uncertainty, disputes, and avoidable inefficiencies. From our experience, around 70% of those disputes could likely have been avoided if the procedures had been more streamlined from the start, so the expectation is that this reform will improve matters going forward.”
He adds that another major development is the easing of export restrictions for Ukrainian armaments manufacturers. “As of February 19, 2026, the ban on exporting armaments was lifted,” Martinenko reports. “The rationale is that the inflow of foreign currency from such sales can further strengthen Ukraine’s defense effort by supporting the acquisition of armaments for the Ukrainian army.“
Looking at recovering war-related damages, Martinenko explains that, at present, there are only two plausible legal mechanisms: bilateral arbitration and domestic Ukrainian litigation. “Unfortunately, there are no other truly meaningful legal mechanisms available right now for pursuing those claims,” he says. “That is why the market is following enforcement developments very closely, particularly where successful awards or judgments may ultimately be converted into actual recovery.“
He points in particular to developments involving DTEK. “We have now seen notable decisions, including one from the U.S. Court of Appeals for the District of Columbia rejecting Russian arguments and finding that sovereign immunity could not apply in that instance,” he reports. “A corresponding development has also taken place in the Netherlands, where a Dutch court allowed the attachment of Russian interests in a joint venture involving Gazprom on the basis of a strong suspicion that Gazprom was acting as a proxy for the Russian Federation. That raises the prospect that enforcement against Russia may, in practice, increasingly be pursued through action against Gazprom as an alter ego.“
Additionally, Martinenko says that the long-awaited introduction of an FDI screening mechanism into Ukrainian law has taken place. “The issue became especially visible after the attempted acquisition of a Ukrainian aviation engine company by Chinese capital before the war. The know-how was effectively being targeted through a share deal structured via a series of smaller acquisitions by private individuals, and only at the final stage did the sellers realize that this was, in fact, a concerted takeover attempt. That episode caused a major stir in the market, led to the transaction being frozen, and ultimately became one of the main drivers behind the push for FDI regulation,” he explains.
Finally, Martinenko also reports that “the government has now ratified an accord with Poland allowing the direct entry of BGK into Ukraine. That means BGK will be able to extend loans to Ukrainian customers and insure them, which could become a useful additional channel of support.” Moreover, he mentions the Ukrainian Parliament’s ratification of the OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions: “This is a landmark step that makes it illegal for Ukrainian nationals to bribe foreign officials. In other words, a bribe given in a foreign jurisdiction by a Ukrainian national will now be considered a crime under Ukrainian law. That step will consolidate the ‘clean hands’ angle of the Ukrainian business environment.“
This article was originally published on CEE Legal Matters’ website.