In this article, we will examine in detail how to recover a debt from a debtor in Ukraine on the basis of a foreign arbitral award: how the procedure works, which documents need to be prepared, the time limits set by law, and the key points to consider for the successful enforcement of a foreign arbitral award.
What is the recognition and enforcement of an arbitral award?
It is a procedure that gives a foreign arbitral award legal effect in Ukraine and allows the recovery of the sums awarded by the arbitral tribunal from the debtor.
How to check whether the debtor has assets in Ukraine?
Having information about specific assets or the debtor’s bank account in Ukraine significantly simplifies the debt recovery procedure. If such information is not available, the debtor’s assets can be identified using the following sources:
- The companies register can provide details about the debtor’s share capital, its founders, and ultimate beneficial owners.
- Public registers can be checked to see whether the debtor owns movable or immovable property, and whether any encumbrances are registered against such property.
- The court register can be reviewed to determine whether any proceedings are pending or judgments have been issued to recover debts from the debtor, or whether liquidation or bankruptcy proceedings have been initiated.
- The debtors’ register can show whether enforcement proceedings have been commenced against the debtor.
A general Google search can help assess the debtor’s reputation, the scale of its operations, whether it owns property, and whether it or related parties are involved in fraudulent schemes.
Recognition of an arbitral award
Which law governs the recognition of arbitral awards in Ukraine?
The Civil Procedure Code of Ukraine (hereinafter the CPC of Ukraine), Articles 474–482.
Which arbitral award can be enforced?
Before applying to the court for recognition of an arbitral award, you should check whether the award can be recognised in Ukraine. Recognition is permitted if:
- The award was made in a state that is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. At present, there are 172 such states (list available here). For other states, the principle of reciprocity applies—an award is enforceable unless the contrary is proven.
- The award is final and has entered into legal force.
- No more than three years have passed since it was issued.
- The debtor resides or is registered in Ukraine, or owns assets in Ukraine.
What documents are required for the recognition of an arbitral award?
Firstly, the original or a notarised copy of the arbitral award. It must be apostilled or legalised in the state where the arbitration took place.
Secondly, the original or a notarised copy of the arbitration agreement. This may be a contract containing an arbitration clause or a separate agreement under which the dispute was referred to arbitration.
A notarised translation of the arbitral award and the arbitration agreement into Ukrainian is also required if they are drafted in a foreign language.
Who considers the application for recognition of an arbitral award and how is it examined?
All applications for the recognition of arbitral awards in Ukraine are heard by the Kyiv Court of Appeal. An appeal against that court’s ruling issued after consideration of the case may be lodged with the Supreme Court.
The court notifies the debtor of the application and invites them to submit objections within one month.
After that, the court examines the application either on the basis of the submitted documents or in a court hearing with the participation of the parties.
The ruling of the court issued following consideration of the application for recognition of an arbitral award may be appealed to the Supreme Court within thirty days of its delivery.
How long does the recognition of an arbitral award take?
By law, the court is required to consider the application within two months. However, due to the war and a high volume of cases, this period can be longer and in some instances takes up to a year.
For example, in case No. 824/155/24, an application for recognition and permission to enforce an award of the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry was filed in November 2024. The ruling granting the application was issued on 27 January 2025. In February 2025, the debtor lodged a cassation appeal with the Supreme Court, arguing that there was no valid arbitration agreement at the time of the arbitral proceedings. The Supreme Court completed its consideration on 10 April 2025, upholding the ruling for recognition and enforcement, noting that there were no grounds to set aside the arbitral award because the national court does not have the power to review the merits of the arbitral tribunal’s decision.
In addition, delays may occur if the court stays the proceedings while a competent authority at the seat of arbitration considers an application to set aside the award. For example, the High Court in London may review an award of the London Court of International Arbitration if the tribunal breached the agreed arbitral procedure or committed a serious error in applying the law.
Is it possible to seize the debtor’s assets before or during the consideration of the application for recognition of an arbitral award?
Yes. Articles 149–159 of the Civil Procedure Code of Ukraine regulate the procedure for applying interim measures. Such measures help prevent the risk of the debtor disposing of assets before the case is resolved.
At any stage of the consideration of the application for recognition of an arbitral award, the applicant has the right to file a motion for interim measures. The most common of these is the seizure of movable or immovable property or funds in the debtor’s bank accounts.
To have such a motion granted, the applicant must justify the existence of risks that failure to impose such measures would complicate or make enforcement of the arbitral award impossible in the future (for example, the creditor has evidence that the debtor is transferring assets or engaging in sham transactions).
The court considers such motions promptly — usually within a few days of filing. The ruling ordering interim measures is subject to immediate enforcement and may be sent to the bailiff for the actual seizure of assets. This is an effective tool to ensure successful debt recovery following the issuance of the recognition order.
When can a court refuse to recognise an arbitral award?
According to Article 478 of the Civil Procedure Code of Ukraine, the court may refuse to grant the application for recognition if:
- A party to the arbitration agreement was incapacitated, or the arbitration agreement is invalid.
- The debtor was not properly notified of the appointment of an arbitrator or of the arbitral proceedings, or was otherwise unable to present their case for valid reasons.
- The award deals with a dispute not contemplated by, or not falling within, the terms of the arbitration agreement, or contains decisions on matters beyond the scope of that agreement.
- The composition of the arbitral tribunal or the arbitral procedure did not comply with the agreement of the parties or the law of the country where the arbitration took place.
- The award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which it was made.
- The law prohibits referring such a dispute to arbitration (for example, disputes concerning the state registration and accounting of rights to immovable property, or disputes under public procurement contracts).
- The arbitral award violates public policy (for example, the court refused to enforce a Stockholm arbitration award against the Odesa Port Plant because it is state-owned property of strategic significance for the economy and security of the state (Supreme Court ruling of 25 November 2021 in case No. 824/183/19)).
A review of common mistakes in seeking recognition of arbitral awards in Ukraine can be found in our separate article at this link.
How is an arbitral award enforced?
After obtaining the court ruling recognising the arbitral award, the creditor applies to an enforcement officer. In Ukraine, there are both state and private enforcement officers.
The enforcement officer has broad powers: making inquiries to banks about accounts, freezing accounts, forcibly transferring funds, seizing and selling assets.
Enforcement can take from several months to several years, depending on the debtor’s cooperation and the availability of assets in Ukraine.
The procedure is free of charge for the creditor. By law, an enforcement fee of 10% is imposed on the debtor; however, a private enforcement officer may require an advance payment of expenses for carrying out enforcement actions.
What should you do if the debtor has no assets in Ukraine?
If the debtor has transferred or concealed assets to avoid enforcement of the award, it is possible to initiate bankruptcy proceedings against the debtor. During this process, the owners and managers can be held liable for the company’s debts if their fault in causing the company’s insolvency is proven.
The creditor can also apply to the court to have transactions declared invalid if they were used to transfer assets out of the debtor company. Such transactions typically show signs of being sham deals—for example, transferring property for a nominal price, transferring assets to relatives or related parties, or failing to pay the agreed purchase price.
Is it possible to recognise and enforce an arbitral award during wartime?
Yes. Ukrainian courts and the State Enforcement Service continue to operate as normal (except in temporarily occupied territories).
About Fortior Law
The recognition and enforcement of arbitral awards is a realistic and effective mechanism for protecting creditors’ rights in Ukraine.
A well-prepared application and supporting documents significantly increase the chances of successful recognition and enforcement. Equally important is conducting a prior analysis of the debtor’s assets in Ukraine that may be subject to enforcement.
Fortior Law’s lawyers regularly advise clients and handle cases involving the recognition and enforcement of arbitral awards in Ukraine — from preparing court documents to full debt recovery through enforcement officers. We are ready to assist both creditors and debtors with comprehensive analysis and the development of enforcement or defence strategies.
If you would like to assess the prospects for enforcing your arbitral award in Ukraine, please write to us at [email protected], or directly to [email protected] or [email protected].
