International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry

Author: Svitlana Bagdashkina

International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry (ICAC at the UCCI) is an independent permanent arbitration institution (third-party tribunal) which activities are regulated by the Law of Ukraine “On International Commercial Arbitration” of February 24, 1994
No. 4002-XII, the Rules of the International Commercial Arbitration Court at the UCCI (Addendum 1 to the Law of Ukraine “On International Commercial Arbitration” of February 24, 1994
No. 4002-XII) and the Rules of the International Commercial Arbitration Court at the UCCI as approved by Resolution of the Panel of UCCI dated April 17, 2007; minutes No. 18(1) (hereinafter referred to as “the Rules”).  

 

ICAC competence

ICAC at the UCCI takes into consideration disputes according to its jurisdiction only in case of a written agreement of the parties to refer to it all or certain disputes arising in connection with any specific relationships regardless of their contractual or non-contractual character.

According to part 2 of Section 1 of the Law of Ukraine “On International Commercial Arbitration”, the below disputes can be considered by international commercial arbitration court:

disputes arising from contractual or other civil and legal relationships within foreign trade and other international commercial cooperation, if at least one party’s entity is located abroad;

disputes between enterprises with foreign investments and international entities and organizations incorporated in Ukraine, disputes between their shareholders as well as disputes with other commercial subjects in Ukraine.

Arbitration agreement can be made as arbitration clause in the contract or as separate agreement.  

 

Applying to ICAC

The way of application to the ICAC and the order of proceedings are governed by the Rules, as described above.

Usually, the below documents should be submitted:

claim;

copies of claim and addendums to the claim;

documents proving the facts of the claim;

receipt proving payment of registration fee.

 

Expenses for submission to ICAC and consideration of the case

Registration fee

According to the Schedule on arbitration fees and costs, upon submission of the claim to ICAC, the registration fee of USD 600 should be paid.

Arbitration fee

Having received a duly executed claim the Secretary General of the ICAC shall forward the resolution on initiation of proceedings on the case to the claimant along with the Rules, Recommended list of arbitrators and informs the amount of arbitration fee to be paid by the claimant to the UCCI within 30 days after receiving the letter.

For non-proprietary disputes the arbitration fee amounts to USD 1,800. For proprietary disputes, the arbitration fee is calculated depending on the amount of claim, as described below.

 

Amount оf claim, US Dollars            Arbitration fee, US Dollars

Up to 10 000                             1 800

10 001 -   50 000           1 800 + 6% of the amount of claim above 10 000

 50 001 - 100 000        4 200 + 4% of the amount of claim above 50 000

100 001 - 200 000       6 200 + 3% of the amount of claim above 100 000

200 001 - 500 000       9 200 + 2% of the amount of claim above 200 000

500 001 - 1 000 000  15 200 + 1% of the amount of claim above 500 000

1 000 001 - 5 000 000 20 200 + 0,5% of the amount of claim above 1 000 000

Above 5 000 000          40 200 + 0,3% of the amount of claim above 5 000 000

 

Apart of the abovementioned expenses, there are additional expenses connected with consideration of dispute by ICAC, specifically expenses for expert examinations, arbitrators’ business trips, translations etc. as well as expenses of the parties which are business trips expenses, legal counsels’ fees etc.

 

Language of arbitration in ICAC

Pursuant to part 1 and 2 of Section 11 of the Rules, the arbitration shall be held in Ukrainian or Russian language. The Parties may agree on the language or languages to be used during the arbitration procedure.

 

Terms of consideration

According to Section 13 of the Rules, a case should be considered no more than 6 months from the moment of appointment of arbitrators. However, in case of a motivated request sent by the Parties, the Panel of ICAC is entitled to extend this term.

 

Enforcement of awards

According to the New York Convention on recognition and enforcement of foreign arbitral awards (1958), awards of the ICAC at the UCCI are final and obligatory for the parties and in case if they refuse to execute them voluntarily the parties are enforced to execute the same at the place of location of a debtor.

Pursuant to part 1 of Section 390 of the Civil Procedural Code of Ukraine, a foreign court decision, which has the same status as international arbitration awards, shall be recognized and enforced in Ukraine if their recognition and enforcement are stipulated by an international agreement ratified by Ukrainian Parliament (Verkhovna Rada of Ukraine), or according to the reciprocity principle.

According to Section 392 of the Civil Procedural Code of Ukraine, a decision on whether a permit can be provided for compulsory enforcement of a foreign court decision shall be taken by a court at the place of location of a debtor. In case if debtor has no seat or residence in Ukraine or debtor’s seat or residence is unknown, the issue whether a permit can be provided for compulsory enforcement of a foreign court decision can be considered by a court at the place of debtor’s possessions in Ukraine.

Therefore an ICAC award can be compulsorily enforced in Ukraine by receiving a permit for its compulsory enforcement in a local court of general jurisdiction.