On Friday, 28 May 2021, the Ukrainian National Committee of the ICC (ICC Ukraine) held the roundtable Consequences of Bill No. 5347 adoption for international commercial arbitration in Ukraine. The event was moderated by Sergiy Gryshko, Head of ICC Ukraine’s Commission on International Arbitration and Head of Dispute Resolution practice at Redcliffe Partners. Daria Zabolotnya, the Secretary General of ICC Ukraine; Roman Prekop, a Partner at Barger Prekop (Slovakia); Assen Alexiev, Deputy Chairman of the Arbitration Court at the Confederation of Employers and Industrialists in Bulgaria (KRIB Court of Arbitration); Andris Dimants, an Associate in the Litigation & Arbitration practice at Vilgerts (Latvia); and Victoria Ivasechko, an Associate in the Dispute Resolution practice at Redcliffe Partners, took part in the discussion.
Sergiy Gryshko introduced the goals of Bill No. 5347 and the amendments suggested by it:
The foreign colleagues shared their experience of the introduction of comparable amendments in their jurisdictions. Roman Prekop said that the liberalisation of the establishment of arbitration institutions had negative consequences for arbitration in Slovakia, and had significantly undermined the European Union’s trust in Slovak arbitration.
Assen Alexiev said that the introduction of comparable amendments in Bulgaria resulted in thousands of consumers suffering from unexpected arbitration awards and a drastic fall in the public’s trust in arbitration. Thus, because of the amendments, the current number of applications for arbitration in Bulgaria is only some 30% of what it was in the 2000s.
According to Andris Dimants, there are currently 66 arbitration institutions in Latvia. However, arbitration is not a recommended method of dispute resolution, as Latvian arbitration institutions are widely used in fraudulent schemes, and there is no procedure for setting aside arbitral awards.
Finally, Victoria Ivasechko analysed the amendments suggested by Bill No. 5347 through the prism of its objective, as well as the criteria for selecting an arbitration institution and a seat of arbitration in accordance with the extensive 2018 International Arbitration Survey: The Evolution of International Arbitration undertaken by Queen Mary University of London jointly with White & Case LLP, and the London Centenary Principles (2015) for determining an effective and safe seat of arbitration developed by the Chartered Institute of Arbitrators (CIArb) to mark its 100th anniversary.