AUB News

The Association of Ukrainian Banks (AUB) held a webinar entitled “Arbitration Court – an Effective Tool for Resolving Financial Disputes.”

The focus was on the practice of the Permanent Arbitration Court at the AUB (hereinafter referred to as the Arbitration Court at the AUB), which has been operating since 2005 and acts on the basis of the Law of Ukraine “On Arbitration Courts.”
Over the years, the Arbitration Court at the AUB has considered more than 65,000 cases involving claims from banks, financial companies, and other market participants. Typical cases include leasing disputes, conflicts in the agricultural sector, and disputes between financial institutions regarding the fulfillment of obligations.
“The Arbitration Court is a real opportunity to quickly protect interests and avoid protracted proceedings,” the organizers noted during the webinar.

What businesses and financial institutions get:

• Speed: decisions are usually made within 1-2 months (depending on the complexity of the case and the procedural actions of the parties).
• Predictable costs: the arbitration fee is set according to a transparent formula (for property claims — 1% of the claim price + UAH 400, but not less than 0.5 and not more than 12 subsistence minimums for able-bodied persons; for non-property claims — 1 subsistence minimum).
• Limited grounds for appeal: the decision of the arbitration court may be overturned only on grounds expressly specified by law, and its enforcement is carried out with the permission of a state court (issuance of an enforcement document/order).
• Legal basis and limits of jurisdiction

Most disputes arising from civil and commercial legal relations may be referred to arbitration, except in cases expressly provided for by law (in particular, restrictions on disputes concerning consumer protection). 

What was discussed at the webinar

• Participants asked practical questions about:
• the grounds and procedure for setting aside arbitral awards (rather than “appeals” in the classical sense),
  examples of non-standard procedural situations in arbitration proceedings,
• enforcement of awards (granting of permission for enforcement by a state court; approaches of the Supreme Court

Typical categories of disputes referred to the Arbitration Court at the AUB 

• leasing and financial leasing (delivery, payments, return of the leased asset);
• credit and other contractual obligations between financial institutions and counterparties;
• settlement disputes in agriculture and related industries;
• debt collection and related claims (penalties, interest, etc.).

How to prepare: contractual work and steps to be taken by the parties

• Include an arbitration clause in contracts (or conclude a separate arbitration agreement).
• Estimate the costs: calculate the arbitration fee using the formula provided in the Regulations on Costs ;
• File a claim with the office of the Arbitration Court at the AUB, attach evidence, pay the fee; the parties may request security for the claim/evidence within the limits that do not interfere with the competence of the arbitration court (the state court assists in obtaining evidence).
• Obtain a decision and, in case of non-compliance, apply to a state court for permission to enforce it.
  Why choose the AUB Arbitration Court
• Institutional stability and independence: the court was registered in 2005, operates on the basis of regulations and provisions, and judges are not employed by the founder.
• Scalable practice: over 65,000 cases considered — established approaches to the consideration of financial disputes.
  Transparent rules and tariffs: regulations, provisions, and arbitration fees are published and regularly updated.

The AUB encourages banking and non-banking financial institutions to include arbitration or alternative arbitration clauses at the contract stage — this provides a fast, economical, and effective tool for protecting rights in the event of a dispute.

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