Usually it is difficult to enforce a foreign court judgement in Ukraine. In addition, Ukrainian law does not explicitly provide for the right of the parties to select the jurisdiction of particular courts, including foreign courts, over any disputes between the parties. By contrast, the parties have the right to submit their disputes to an arbitration tribunal, as explicitly provided by Ukrainian law. Thus, the provisions of an agreement providing for the exclusive jurisdiction of courts of a foreign country may not prevent the parties from filing a lawsuit against the other party in a Ukrainian court and obtaining a court award that would be enforceable in Ukraine.
Therefore, when possible, we usually recommend the parties to select the jurisdiction of an international arbitration tribunal (e.g. the ICC, LCIA or the Arbitration Institute of the Stockholm Chamber of Commerce). An award from such an arbitration hearing should be enforceable in Ukraine. On this basis, it should be possible to prevent a party from obtaining a Ukrainian court decision on the issue, and the arbitral decision that may be obtained should be enforceable in Ukraine.
For more information contact: Andriy Fedchyshyn, Head of Litigation