Appeal of the UBA Committees to the Verkhovna Rada on the Powers of Arbitration Courts

2017-11-16

KYIV - November 16, 2017. The Committee on Procedural Law and the Committee on Alternative Dispute Resolution of the Ukrainian Bar Association appealed to the Chairman of the Verkhovna Rada and the chairmen of the relevant committees to consider recommendations to the draft law "On Amendments to Certain Legislative Acts of Ukraine on Improving the Investment Climate in Ukraine" regarding the extension of the powers of arbitration courts.

The Verkhovna Rada of Ukraine is considering a draft law "On Amendments to Certain Legislative Acts of Ukraine on Improving the Investment Climate in Ukraine" (Reg. No. 6540 of 06.06.2017) (hereinafter referred to as Draft Law No. 6540). The Committees consider it necessary to warn of the dangers inherent in the current wording of paragraph 27 of the Draft Law No. 6540 concerning the radical extension of the powers of arbitral tribunals in the absence of real mechanisms for safeguarding against abuses.

As stated in paragraph 11 (4) of the Explanatory Note, the adoption of Draft Law No. 6540 will ensure "the right of citizens and other persons whose rights are violated to have access to a fast and efficient alternative dispute resolution procedure - arbitration" and introduce a "mechanism of guarantees against abuse in use of arbitration courts for the achievement of unlawful purposes ".

However, according to the experts of the Committees, which are experts in the economic process, arbitration, arbitration proceedings, the Draft Law No. 6540 regarding the extension of the powers of arbitration courts to consider commercial disputes does not meet the declared purpose of the bill and creates systemic risks of abuse and violations of the rights of economic entities.

Please contact the UBA Secretariat for the full text of the Appeal.

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