On 2 July 2016, the President of Ukraine signed the Law of Ukraine On Enforcement Proceedings (the “Law on Enforcement Proceedings”) and the Law of Ukraine On Bodies and Persons Engaged in Enforcement of Judicial Decisions and Decisions of Other Bodies (the “Law on Enforcement Authorities”) (together the “Laws”).
The Laws will become effective in October 2016 and are aimed at reforming the existing system of enforcement of court decisions by making the procedure more efficient and by increasing the judicial control over enforcement of court decisions.
The Laws introduce the role of private enforcement officers who will be authorized to enforce court decisions (with certain exceptions) together with the state enforcement officers.
According to the Law on Enforcement Proceedings, the registration of the enforcement documents, documents of the enforcement proceedings, fixation of the enforcement actions will be performed in the freely accessible automatic system. Sending of documents relating to the enforcement proceedings to the respective parties will be permitted by e-mail.
The Law on Enforcement Proceedings also provides for establishment of the publicly available Unified Register of Debtors (the “Register”) in which the information on non-fulfilled pecuniary liabilities of the debtors is to be provided in real-time mode. The purpose of the Register is to prevent alienation by debtors of their assets in order to avoid enforcement of court decisions.
It is expected that the adoption of the Laws will allow businesses to collect debts from their debtors under court decisions much more effectively.