A Commercial Dispute in Ukraine for an Israeli Company: Commercial Courts, Arbitration, Limitation and Enforcement of Judgments in Wartime

A supplier who did not pay, a partner who breached an agreement, or a customer who received goods and disappeared: Israeli companies working with Ukraine need to know where a dispute is heard, how much time there is to act and what happens with the judgment afterwards. This guide describes the situation in November 2026, with martial law in force until 29 January 2027.

1Where is a commercial dispute heard in Ukraine?

Business-to-business disputes are heard in the commercial courts, under the Commercial Procedure Code. If the contract has a valid arbitration clause, the dispute will usually go to arbitration. The structure of the courts:

2Are the courts in Ukraine operating during the war?

Yes. According to a Global Arbitration Review survey, the local courts received more than 1.9 million filings in 2025, an increase of 25.1% compared with 2024, and they operate at a level the survey describes as close to the pre-war period. A large part of proceedings is conducted through the electronic court system and remote hearings.

3How much does it cost to file a commercial claim in Ukraine?

In 2026 a company's money claim carries a fee of 1.5% of the amount claimed, not less than 3,328 and not more than 1,164,800 hryvnia, according to the courts' fee table for 2026. The fee is linked to the subsistence minimum for an able-bodied adult, which stands at 3,328 hryvnia in 2026, and a company's non-monetary claim carries a fee of 3,328 hryvnia.

After successful mediation in a case already pending in court, under Mediation Law 1875-IX, 60% of the fee paid is refunded. Mediation itself is voluntary, and there is no requirement to use it before filing a commercial claim.

4How do you collect a debt from a Ukrainian company?

An undisputed, documented debt is usually collected through a court order under the Commercial Procedure Code, after a formal letter of demand. If the debtor objects, the matter moves to an ordinary claim, and where assets may be moved away, interim relief is also sought.

• Court order (sudovyi nakaz): the Commercial Procedure Code (articles 147-160) allows applying for a fast court order on a documented debt, without a full hearing. If the debtor files an objection, the matter moves to an ordinary claim.
• Letter of demand: it is advisable to send a proper demand, with a calculation of the debt, before any proceedings. It also documents the date of the demand.
• Interim attachment: an application for interim relief to secure the claim is filed with the claim or before it, where there is a concern that assets will be moved.
• Enforcement: a judgment is enforced by state or private enforcement officers. A reform of enforcement proceedings (Law 4833-IX) is due to come into force in October 2026.

5How long do you have to file a claim: what happened to limitation?

As a rule three years from the day the injured party knew or should have known of the injury, and as of November 2026 the period is running again: Law 4434-IX abolished the suspension of limitation and has been in force since 4 September 2025. From April 2020 (COVID-19) and later during martial law, the running of limitation had been suspended.

• A claim whose limitation period began before the suspension: the count continues from the point where it stopped, and does not start again.
• A claim that arose during the suspension period: limitation began to run on 4 September 2025.
• Some claims have shorter special limitation periods, and the court may renew a period missed for a justified reason (article 261 of the Civil Code).
• A limitation period that had already expired before the suspension does not revive.

6Arbitration or court: which is better against a Ukrainian party?

International arbitration is often preferable, especially when the other side's assets are in Ukraine and in other countries, because an arbitral award is enforced under the New York Convention. The main local institution is the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry (ICAC). According to Global Arbitration Review, 304 new cases were registered there in 2025, compared with 440 in 2024.

• 2026 reform: Law 4856-IX, in force from 21 May 2026, broadens the definition of an international dispute, also applies to earlier arbitration agreements, and refers the appointment of arbitrators in institutional arbitration to the institution's rules.
• New York Convention: Ukraine ratified it in 1960 and Israel in 1959. An Israeli arbitral award, or an award made in another contracting state, can be recognised and enforced in Ukraine.
• The recognition procedure: an application for recognition and enforcement of a foreign arbitral award is heard by the Kyiv Court of Appeal.
• Sanctions and public policy: in January 2026 the Supreme Court set aside recognition of an award made in England, on the ground that enforcing it would help circumvent sanctions and violate public policy. The courts examine the economic substance of the transaction.
• Separability: according to case law from February 2026, the arbitration clause survives even after the contract is terminated.

For a general comparison between arbitration and court in disputes with a foreign party see a dispute with a developer abroad: arbitration or court.

7How do you enforce an Israeli judgment in Ukraine?

An Israeli judgment is enforced in Ukraine on the basis of reciprocity, because no bilateral treaty between Israel and Ukraine on this matter was found. Under article 462 of the Civil Procedure Code, a foreign judgment is recognised and enforced in Ukraine if a treaty ratified by the Verkhovna Rada requires it, or on the basis of reciprocity, and reciprocity is presumed to exist until the other party proves otherwise.

• Competent court: the local court at the debtor's place of residence or seat, or at the location of the assets if the seat is unknown.
• Grounds for refusal (article 468): a judgment that is not final, a party that was not duly notified, a matter within the exclusive jurisdiction of the Ukrainian courts, a conflicting judgment or earlier proceedings in Ukraine, expiry of the deadline, or harm to the interests of Ukraine.
• 2019 Hague Convention: in force for Ukraine since 1 September 2023. Israel signed it on 3 March 2021, but as of November 2026 the Convention is not in force for Israel, so it does not apply between the two countries.
• Translation: the application and the judgment are filed in certified Ukrainian translation, with an apostille.

8And how do you enforce a Ukrainian judgment in Israel?

A Ukrainian judgment is enforced in Israel by an application under the Foreign Judgments Enforcement Law, 1958, generally filed within five years of the date of the judgment. The court enforces a foreign judgment when it was given by a competent court, is no longer appealable, is enforceable in the state where it was given and does not conflict with public policy, and the law also requires reciprocity.

9Which law will apply, and which language?

Court proceedings in Ukraine are conducted in Ukrainian. In an international contract the parties can generally choose the governing law and a jurisdiction clause, subject to mandatory provisions and the exclusive jurisdiction of the Ukrainian courts.

• No European regulations: Ukraine is not an EU member, so the EU regulations on jurisdiction and applicable law (Brussels I recast, Rome I) do not apply there.
• Choice of law: an international contract may set the governing law, subject to Ukraine's private international law rules and mandatory provisions.
• Exclusive jurisdiction: disputes over real estate in Ukraine and certain other matters are reserved to the Ukrainian courts, and a different jurisdiction clause will not help in them.
• Language: court proceedings are conducted in Ukrainian, and documents in a foreign language are filed in translation.
• A bilingual contract: it is advisable to provide which version prevails in case of conflict.

10How do you choose a route that can actually be enforced?

The choice depends on where the other side's assets are and on the prospect that the judgment or arbitral award will be recognised there. This involves analysing the contract and the prospects of enforcement, coordinating with local lawyers in Ukraine, conducting proceedings in Israel where appropriate, and enforcing foreign judgments and arbitral awards in Israel. The aim is a route that has a practical chance of turning into money.

11What do you do as soon as a dispute with a Ukrainian party begins?

First locate the jurisdiction clause and calculate the limitation period, and only then choose a route: a court order, a claim or arbitration.

1. Locate the jurisdiction clause: court or arbitration, which institution and where, and which law applies.
2. Calculate limitation: including the suspension period that ended on 4 September 2025.
3. Check the other side: status in the register, assets, location in a combat zone, and a sanctions check.
4. Gather evidence: contract, invoices, shipping documents, correspondence. Start translating the main documents.
5. Send a proper demand and consider mediation or negotiation.
6. Consider interim relief if there is a concern that assets will be moved.
7. Choose a route: court order, claim or arbitration, according to the type of debt and the amount.
8. Think about enforcement in advance: where the assets are, and whether the judgment or arbitral award will be recognised there.

The information here is general and current as of November 2026, and every dispute requires individual review.

More on doing business in Ukraine: Setting up a company in Ukraine · Corporate tax and transferring profits to Israel from Ukraine · An Israeli company operating in Ukraine · Comparison of 8 countries · All guides for companies and businesses

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