People’s deputies of Ukraine propose to amend the Law of Ukraine “On courts of arbitration” to bring it in compliance with the international rules of arbitration, draft law No. 3660. Lesia Samarina, attorney, head of Dnipropetrovsk office of Ilyashev & Partners Law Firm, commented on the amendments proposed by the deputies to the Yurydychna Praktyka:

“The draft law was prepared to bring the provisions of the Law of Ukraine “On courts of arbitration” in compliance with the international rules of arbitration: the European Convention on International Commercial Arbitration of April 21, 1961, the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL) of June 15, 1976, the EU Declarations and Recommendations on alternative dispute resolution.

The activities of the arbitration courts in our country have been the subject of repeated discussions and the substance of abuse over the years. By its legal nature, this non-state judicial body is a civil society self-regulatory institution performing law-enforcement activities. The court of arbitration is intended inter alia to reduce the burden on state courts. In the USA, e.g. about 60% of commercial disputes are considered by the courts of arbitration. Unfortunately, in our country due to imperfect legal regulation of activities of the arbitration courts consideration of cases only results in considerable complications for the parties. Therefore, bringing provisions of the Law “On courts of arbitration” in compliance with the international standards will contribute to a more active development of alternative methods of dispute resolution.

In particular, the draft law proposes to exclude different interpretations of the existing legal rules. It is proposed to make clear that only cases directly referred to by law are excluded from the jurisdiction of arbitration courts. It should be noted that to date there are ambiguous interpretations with respect to the jurisdiction of courts of arbitration over disputes.

Activities of the courts of arbitration should be transparent and understandable to the parties. It will expand the opportunities for alternative dispute resolution and “unload” the state courts. In addition, reference to the court of arbitration will also minimize the costs of litigation. Indeed, the recent changes of the court fee to a large extent make it difficult to exercise the right of persons to judicial protection and violate the right to appeal against the court decision, which is expressly envisaged in the Constitution of Ukraine”.