How to Enforce an Arbitral Award Against a Ukrainian Company Going Bankrupt

by Dmytro Monastyrskyi, Oleksii Hlovatskyi

The complicated economic situation and military activity in industrial Eastern Ukraine has brought a large number of Ukrainian companies operating in the region to insolvency. Needless to say, recurring economic shocks and multiple other factors can also pose bankruptcy risks for businesses not directly affected by the war. Companies engaged in commercial relations with foreign partners typically prefer to resolve disputes via international commercial arbitration. A situation that a foreign business may face is winning an arbitration proceeding and having an arbitral award against a company starting insolvency proceeding in Ukraine, which makes it considerably harder to achieve actual recovery. So, let’s have a look at what a foreign creditor should undertake to enforce one’s arbitral award in this situation.