A Security Tool

At present businesses tend to secure their activities by including an arbitration clause into commercial contracts. Despite the expense, the procedure is recognized to be more flexible and enforceable compared to litigation. Despite the low level of trust in the court system, transparency and the high professional level of arbitrators are becoming the core benefit for doing cross-border business.

The economic crisis has provided steady streams of arbitration work worldwide. The shortage of finance and inability to run payments in a timely manner has dramatically increased the number of related disputes.

In Ukraine the most widely discussed cases are those initiated by investors against the state. No matter who was right or wrong the situation results in suspicious behavior on the part of foreign counterparts. The issue of enforceability of international arbitration decisions is obviously becoming one that plays a crucial role in an investor’s decision-making and, as a result, requires in-depth analysis in our February issue.

Happy reading,
Olga Usenko