Ukraine expands the jurisdiction of international arbitration

On May 21, 2026, the Law of Ukraine "On Amendments to Certain Laws of Ukraine Regarding the Expansion of the Jurisdiction of International Arbitration" entered into force, substantially updating the legal framework governing international commercial arbitration.

The primary objective of the legislative amendments was to bring national legislation into line with international standards enshrined in the UNCITRAL Model Law on International Commercial Arbitration.

One of the key innovations is the expansion of the concept of an international dispute. Previously, the international character of a dispute was determined primarily by the location of the parties' places of business in different states. The legislator has now introduced additional criteria.

In particular, a dispute may be considered international if the parties have agreed that the subject matter of the arbitration agreement is connected with more than one state, or if the place of arbitration, the place of performance of the principal part of the obligations, or the place with which the subject matter of the dispute is most closely connected is located outside the state where the parties have their places of business. These changes significantly broaden the range of disputes that may be referred to international commercial arbitration.

Of equal importance is the conferral on international commercial arbitration of the power to hear investment disputes involving an investor and a state, its bodies, institutions, or intergovernmental organizations.

Such disputes may now be examined by arbitral institutions located in Ukraine, where this possibility is provided for by an international treaty, by law, or by agreement of the parties. This will help reduce the costs of dispute resolution and increase the level of trust that foreign investors place in Ukraine.

The changes introduced are of considerable significance in the context of Ukraine's post-war reconstruction, as an effective mechanism for the protection of investments is an essential precondition for attracting foreign capital and developing the country's economy.