International arbitration News, analytics and practice



Let me start by stating that formally consumers’ rights in Ukraine are protected and even overprotected. They even may file claims which are free of court fees. However, recently new initiative appeared that was aimed at protection of consumers from “deprivation of rights to be protected by the state court system”. Today, October 20, the core committee of the Ukrainian Parliament gave its positive opinion to the bill that excludes the consumers’ disputes out of the competence of arbitration courts. The bill was registered with the Verkhovna Rada of Ukraine on September 9, 2010.


Arbitration is better than litigation, but proven business partners are the best

Conducting business internationally it is extremely important to be sure about the bona fide status of your counterparty. This factor is significant for potential disputes and may be considered in two main aspects. First of all the unclear legal status of counterparty may hide certain problems which may cause disputes. Secondly, the outcome of any arbitration or litigation against that party with unclear legal status may be ineffective due to impossibility to enforce an award or court decision.


New Age Attorneys

We continue a series of comments on this blog and we apologize to our subscribers and readers for a pause. The reason for the pause was the active involvement of the author of the blog to the process of establishing a new player in the legal services market that has occupied a niche of services in the field of international arbitration, trade and investment. I beg your welcome! Cai & Lenard Law firm!


cai New Age Attorneys 

The firm's lawyers shape the practice of arbitration in Ukraine. This blog will be updated by the analysis of these practices along with other useful materials. Cai & Lenard Website


Anw?lte der Neuen Zeit

Wir sind weiterhin eine Reihe von Kommentaren auf diesem Blog zu schreiben und wir wollen an unsere Abonnenten und Lesern f?r eine Pause zu entschuldigen. Der Grund f?r die Pause war die aktive Beteiligung der Autor des Blogs auf den Prozess der Schaffung einer neuen Player im Markt der juristischen Dienstleistungen, die eine Nische von Dienstleistungen im Bereich der internationalen Schiedsgerichtsbarkeit, Handel und Investitionen besetzt hat. Ich bitte Sie herzlich willkommen! Cai & Lenard Anwaltskanzlei


cai lenard Anw?lte der Neuen Zeit 

Die Anw?lte der Kanzlei shaffen die Praxis der Schiedsgerichtsbarkeit in der Ukraine. Dieser Blog wird durch die Analyse dieser Praktiken zusammen mit weiteren n?tzlichen Materialien aktualisiert werden.  Cai & Lenard Website


A court is not obliged to read an arbitration clause

This is another post in the Ukraine – arbitration-friendly jurisdiction set of comments. The Highest Economic Court of Ukraine being a body that is responsible for elaboration of the unified court practice of resolution of commercial disputes in Ukraine, adopted the ruling that answers the question: “Is a court obliged to terminate proceedings if a dispute is based on a contract that contains valid arbitration clause?”


RosUkrEnergo is demanding the Stockholm Arbitration that Naftohaz Ukrainy compensate some USD 5.4 billion of losses

RosUkrEnergo (Switzerland) is demanding the Arbitration Institute of the Stockholm Chamber of Commerce that Naftohaz Ukrainy national joint-stock company compensate some USD 5.4 billion of losses for withdrawal of 11 billion cubic meters of gas stored in the Ukrainian repositories, RosUkrEnergo press secretary Andrii Knutov has informed Ukrainian News.

In his words the arbitration court opened hearings within the framework of consideration the dispute between RosUkrEnergo and the national oil and gas company.


Enforcement of Arbitration Awards in Russia and Ukraine: Dream or Reality?

Recently we have reached one interesting publication “Enforcement of Arbitration Awards in Russia and Ukraine: Dream or Reality?”, prepared under the auspices of the American Bar Association, Section of International Law and the Center for Continuing Legal Education.

Though I do not completely agree with certain opinions of the authors (in some cases they sound too critically, I think) I recommend to read that material. Not only because some of the authors are my colleagues and acquaintances. The publication is full of practical situations illustrated by cases.


“Naftohas Ukrajiny” muss “RosUkrEnergo” 197 Mio. Dollar zahlen

Wie dem “Dserkalo Tyshnja“ bekannt wurde, hat das Stockholmer Schiedsgericht in einem Zwischenurteil, bez?glich der Forderungen von “RosUkrEnergo” an “Naftohas Ukrajiny”, “Naftohas” verpflichtet, dem Kl?ger 197 Mio. Dollar zu zahlen.


Arbitration tribunal of SCC ordered USD 197 Million in favor of RosUkrEnergo

The tribunal of the Arbitration Institute of the Stockholm Chamber of Commerce has issued a intermediate decision on RosUkrEnergo's case against National Joint Stock Company “Naftogaz Ukrayiny” for approximately USD 2 million, reports. The court has ordered the Ukrainian state company to return USD 197 million to RosUkrEnergo. RosUkrEnergo alleged, that Naftogaz took 11 billion cubic meters of gas in Ukrainian underground gas storage facilities from RosUkrEnergo.


Prove that arbitration does exist!

Probably there is no guide on how to draft an arbitration clause properly that does not recommend to specify the arbitral institution or administering body correctly.

Naming an institution to administer the arbitration proceeding or to appoint the arbitrators if the institution never existed, is misnamed in the clause or refuses to act, is one of the examples of pathological arbitration clauses. It is so in doctrine and in international practice. But how do Ukrainian courts decide if there are any doubts concerning the name of the institution?exists Prove that arbitration does exist!


Olympic v. Ukraine

“A State may not expropriate or otherwise

take in whole or in part a foreign private

investment in its territory, or take measures

which have similar effects, except …”

1992 World Bank Guidelines

on the Treatment of Foreign Direct Investment

Recently the Olympic Entertainment Group (OEG) – a Baltic group of company operating casinos in many countries – announced its intention to institute arbitration proceedings against Ukraine ( The ground for filing the claim may be the measures of the state resulted in prohibition of gambling in Ukraine. Respective law was adopted on 15 May 2009 and introduced on 25 June 2009. The above announcement was made on 10 March 2010, and already caused different comments regarding the possible outcomes of the case. Some of my colleagues  believe that the Group has no chance to win because the measure were introduced by law, and that law was not challenged before the Constitutional Court of Ukraine. However, there is an alternative opinion, that the mentioned circumstance (no case against the above law in the Constitutional Court) may not be treated as decisive for the tribunal.

casino arbitration Olympic v. Ukraine


First “result” of the Gazprom’s war against Ukraine

Slovak gas company Slovensky Plynarensky Priemysel (SPP) filed the request for arbitration before the International Court of Arbitration of the International Chamber of Commerce in Paris against Gazprom claiming for damages caused by short delivery of gas during the gas war against Ukraine. SPP calculated the amount of claim (approximately EUR 100 mln of direct damages) and presented it during the negotiations with Gazprom.


Intention to arbitrate or Pathological arbitration clause?

With this post we continue the Ukraine – arbitration-friendly jurisdiction set of comments. We already discussed the approach that was typical for Ukrainian courts concerning the validity and enforceability of ad hoc arbitration clauses till recent times. Ukrainian courts’ practice still is not a pro-arbitration one. However, there is the understanding of difference between a pathological arbitration clause and a poorly drafted clause which though may be rescued. mistakes in arbitration 500x466 Intention to arbitrate or Pathological arbitration clause?


An ICSID tribunal has found that Ukraine violated international law on tenders

An arbitration tribunal at the International Centre for Settlement of Investment Disputes (President: Juan Fern?ndez-Armesto (Spanish), arbitrators: Jan Paulsson (French), J?rgen Voss (German)) is considering the case upon the request of Mr. Joseph Charles Lemire, a national of the United States of America, filed in respect of a case against Ukraine. The case was brought under the 1994 Bilateral Investment Treaty between Ukraine and the United States. The dispute concerned the issuance and operation of radio broadcasting licenses in the Ukraine.

An ICSID arbitration tribunal has found that Ukraine violated international law on tenders by awarding radio broadcasting licences in secret in 2004 – but rejected other claims brought against the state by a US radio investor.



Centragas Holding AG arbitration against Ukraine

On 5 February 2010 Centragas Holding AG, a company incorporated in Austria in 2004 holding 50 % of shares in RosUkrEnergo, announced its intention to institute the arbitration proceedings against the Government of Ukraine according to the Energy Charter Treaty.

Arbitration Centragas Holding AG arbitration against Ukraine

Map illustrates major natural gas pipelines in central and eastern Europe. Germany's gas imports from Russia pass either through Ukraine, Slovakia and the Czech Republic, or through Belarus and Poland. SOURCE: Inogate (EU oil and gas transport co-operation programme)

As it was announced, Ukrainian government did not answer the official request of Centragas filed in accordance with the Energy Charter Treaty. The announcement stated that the request was filed to initiate the negotiations concerning the expropriation of 11 billion cubic meters of gas, owned by RosUkrEnergo, a joint venture of Centragas and Gazprom

For more information please see UNIAN informational agency page.

If you are interested in information about Russia–Ukraine gas disputes please see the link.