Aviation Law Ukraine: Key Rules and Post-War Opportunities

Aviation law in Ukraine has always been closely tied to the country’s strategic location at the crossroads of Europe and Asia. Today, however, the aviation sector operates under the extraordinary circumstances of war. While commercial flights remain suspended, Ukraine is already laying the legal and institutional foundations for the post-war recovery of its aviation industry.

This article explores the key rules that shape Aviation Law Ukraine — from aircraft registration and leasing to airport concessions and dispute resolution. It also outlines the post-war opportunities expected to emerge as Ukraine rebuilds its aviation infrastructure and reopens its skies.

The legal framework of Aviation Law Ukraine is primarily based on the Air Code of Ukraine, which serves as the cornerstone document regulating civil aviation. It establishes rules for aircraft registration, certification, air traffic management, and liability. In addition, Ukraine is a signatory to major international treaties such as the Chicago Convention of 1944, the Montreal Convention of 1999, and the Warsaw Convention, which harmonize Ukrainian aviation law with global standards.

Oversight and regulatory functions are carried out by the State Aviation Administration of Ukraine (SAAU) under the Ministry of regions development. The SAAU is responsible for licensing carriers, ensuring flight safety, and supervising compliance with both domestic and international obligations.

Another essential element of Ukraine’s aviation legal system is the Cape Town Convention on International Interests in Mobile Equipment and its Aircraft Protocol. Ukraine acceded to the so-called “Alternative A” (A-version) under the Aircraft Protocol, which provides creditors with stronger remedies in cases of default or insolvency of an airline. This enhances legal protection for lessors, lenders, and other investors involved in aircraft finance transactions.

In parallel, Ukraine continues the harmonization of its aviation regulations with EU law under the EU–Ukraine Common Aviation Area Agreement. This process strengthens legal certainty for investors and facilitates Ukraine’s integration into the European aviation market.

Even under wartime restrictions, these institutions and frameworks continue to operate, ensuring that Ukraine’s aviation sector will be ready for a rapid restart once commercial flights resume.

Aircraft registration is a central aspect of Aviation Law Ukraine, as it defines the nationality of the aircraft and ensures its compliance with safety and operational requirements. Civil aircraft in Ukraine are registered with the State Register of Civil Aircraft maintained by the State Aviation Administration of Ukraine. Only aircraft that meet technical and safety standards, as confirmed through airworthiness certification, may be registered.

Ownership rights over aircraft can belong to Ukrainian or foreign individuals and legal entities, subject to restrictions set by Ukrainian law and international obligations. Ukrainian carriers may also operate foreign-owned aircraft under leasing arrangements, provided they comply with national and international safety standards.

Leasing is a crucial mechanism in the Ukrainian market, given that many domestic airlines rely on aircraft leased from foreign lessors. In this respect, Ukraine’s adherence to the Cape Town Convention and the Aircraft Protocol (Alternative A) plays a key role. It provides creditors and lessors with strong protections, including expedited repossession of aircraft in the event of a debtor’s default or insolvency. This framework has encouraged international leasing companies and financial institutions to work with Ukrainian airlines over the years.

Another feature of Ukrainian law is the recognition of security interests over aircraft and the ability to record them in the International Registry under the Cape Town Convention. To use this system, market participants must obtain an Authorization Entry Point (AEP) code from the SAAU, which acts as the national entry point.

Even during wartime, aircraft registration and ownership regulations remain in force, forming the backbone of the country’s readiness to restore its aviation operations once conditions allow.

The aviation finance and leasing sector has always been one of the most dynamic elements of Aviation Law Ukraine, given that most Ukrainian airlines rely on leased aircraft rather than purchasing fleets outright. Cross-border leasing agreements, loans, and sale-and-leaseback transactions are standard tools used by domestic carriers to expand or modernize their fleets.

Ukraine’s ratification of the Cape Town Convention and Aircraft Protocol (Alternative A) significantly improved the country’s reputation among international lessors and banks. Creditors enjoy greater certainty of repossession in case of default, insolvency, or termination of a lease agreement.

Over the past decades, Jurvneshservice has advised leading international lessors such as AerCap, Aircastle, Willis Lease Finance Corporation, and GE Aviation Services, as well as financial institutions including Wells Fargo and Erste Group. Our lawyers have assisted in cross-border leasing transactions, aircraft registration and deregistration in Ukraine, and enforcement of creditors’ rights under the Cape Town Convention.

Over the years, Jurvneshservice has developed a strong reputation for preparing detailed legal opinions for international lessors and financiers. These opinions — covering issues from aircraft ownership and tax implications to enforcement of security interests — are frequently relied upon in cross-border transactions.  They have become a trusted reference point for international leasing companies when structuring deals with Ukrainian airlines, further underlining Jurvneshservice’s role as a bridge between Ukrainian regulation and global aviation finance standards.

In leasing transactions, we provide foreign clients with comprehensive services that go beyond standard legal support. These include advising on aircraft import and export procedures, registration and deregistration of aircraft, and repossession in case of lessee default. We regularly support lessors when leasing aircraft to Ukrainian airlines — ranging from standard dry leases to complex securitization structures. Particular attention is devoted to guiding foreign lessors through Ukrainian banking compliance and financial monitoring procedures to ensure smooth payment flows under lease agreements.

Taxation is another critical factor. Ukrainian legislation provides specific rules on the taxation of aircraft leasing transactions, including VAT exemptions in certain cases. However, the wartime environment has complicated financing structures, as insurance premiums and risk assessments have risen sharply, and commercial aviation operations remain suspended.

Despite these challenges, international lessors and financial institutions continue to monitor the situation in Ukraine closely. Once the skies reopen, demand for modern aircraft in Ukraine will likely surge, creating new opportunities for financing, leasing, and refinancing. The legal framework already in place provides sufficient safeguards to attract investors back into the Ukrainian aviation market.

The licensing of air carriers is one of the cornerstones of Aviation Law Ukraine. It determines not only the legal capacity of an airline to operate commercial flights but also reflects its reliability and compliance with international safety standards. Obtaining an air carrier license is a complex process that requires proof of financial stability, technical preparedness, and organizational capability. To qualify, an airline must hold an Air Operator Certificate (AOC), maintain an adequate fleet of aircraft, employ properly trained personnel, and implement a Safety Management System (SMS). Only after these conditions are verified does the State Aviation Administration of Ukraine (SAAU) grant the license to conduct commercial air transport operations.

For Ukrainian carriers, access to international routes is of particular importance. A license on its own does not open the doors to the global market: to operate international flights, airlines must obtain separate route rights under bilateral air service agreements. Governments allocate frequencies and designate carriers for specific destinations, while in the case of the European Union, Ukrainian operators must also secure Third Country Operator (TCO) Authorization from EASA. This additional layer of scrutiny means that even domestically licensed airlines must undergo further compliance checks before being allowed into the European market.

Ukraine’s integration into the EU–Ukraine Common Aviation Area Agreement further anchors licensing rules to European standards. This framework requires Ukrainian carriers to comply with EU safety, technical, and ownership requirements, aligning Ukraine’s licensing system with the acquis communautaire and strengthening legal certainty for airlines aiming to re-enter the European market after the war.

Aviation safety remains the central benchmark for both national and international regulators. Ukrainian airlines are subject to regular audits by the State Aviation Administration, as well as to ramp inspections under the EU’s Safety Assessment of Foreign Aircraft (SAFA) program. Serious deficiencies may result in operational restrictions or inclusion on the EU Air Safety List, which effectively bars access to the European airspace. In today’s environment, sanctions create further barriers by restricting the use of aircraft of Russian or Belarusian origin. For Ukrainian carriers preparing for post-war recovery, compliance with global safety requirements will be a decisive factor in regaining competitiveness.

Jurvneshservice regularly assists Ukrainian airlines in obtaining Air Operator Certificates and air carrier licenses, advising on compliance with safety standards and helping secure international route rights. Our experience includes supporting Ukrainian carriers, as well as advising on the launch of new airlines in Ukraine, guiding them through the whole cycle — from incorporation and regulatory approvals to licensing and safety compliance. This practical involvement ensures that our clients are fully prepared not only to obtain licenses but also to maintain impeccable compliance records that will withstand the most rigorous international scrutiny.

Experience shows that those companies that proactively invest in compliance and safety systems are the ones best positioned to gain access to valuable routes. In the post-war era, airlines with strong licensing records and reputations for safety will be the first to return to the international market and regain passenger trust.

Airports are critical nodes of the aviation system, and in Ukraine, they represent one of the most promising areas for investment once the skies reopen. For years, Ukrainian airports have been in need of modernization to meet international standards of safety, efficiency, and passenger service. The war has further highlighted the importance of resilient infrastructure that can attract both public and private capital.

Concessions are expected to play a central role in this process. Under Ukrainian law, a concession is a form of public–private partnership (PPP) that allows private operators to manage, finance, and modernize airport facilities while the state or local authorities retain ownership of the runway. This model has already been tested in Ukraine with the long-term concession of Kyiv International Airport (Zhuliany), demonstrating both the opportunities and challenges of private involvement in airport management.

The government, with support from international financial institutions such as the EBRD and IFC, has initiated studies into potential concession projects for major airports, including Boryspil, Lviv (Danylo Halytskyi International), and Odesa. These hubs are likely to become focal points of post-war reconstruction, requiring large-scale investments in terminals, runways, cargo facilities, and digitalization.

Jurvneshservice pays special attention to the future of airport concessions in Ukraine. Our lawyers analyze various models of airport management — from full concessions to hybrid structures involving agencies and private operators — and evaluate their suitability for the Ukrainian context. We closely monitor international best practices as well as ongoing studies by the EBRD and IFC on concession opportunities for Boryspil, Lviv, and Odesa airports. The case of Zhuliany, with its central location in Kyiv, illustrates both the advantages of private involvement and the challenges of balancing public interest, urban planning, and commercial efficiency.

The post-war recovery will also bring opportunities for foreign investors to participate in the redevelopment of regional airports, which could strengthen domestic connectivity and support tourism, trade, and humanitarian logistics. With the EU–Ukraine Common Aviation Area Agreement in place, private operators entering the Ukrainian market will face a regulatory environment increasingly aligned with European standards.

Jurvneshservice is well-positioned to support investors, lenders, and public authorities in these projects. Our lawyers advise on concession agreements, regulatory approvals, financing structures, and dispute resolution. Drawing on our expertise in complex asset financing, aviation law, and infrastructure projects, we help clients structure deals that are both compliant with Ukrainian regulations and bankable for international financial institutions.

In the post-war era, airport concessions will not only modernize Ukraine’s aviation infrastructure but also serve as a symbol of confidence in the country’s integration into the European and global transport system.

A distinctive feature of doing business in Ukraine is the regulatory scrutiny of foreign currency payments. For aviation transactions — whether aircraft leasing, securitization, or large-scale infrastructure financing — Ukrainian banks act as gatekeepers. No international payment can be executed without the bank’s review of supporting documentation.

Currently, banks require a complete set of documents confirming the legitimacy of each transaction. This typically includes:

• the underlying contract and its amendments
• invoices or payment schedules
• proof of services rendered or goods delivered
• corporate structure of the foreign counterparty, identifying its ultimate beneficial owner (UBO)

The level of scrutiny has only increased since 2022, as Ukrainian regulators and banks strengthen compliance with anti–money laundering (AML) and counter-terrorist financing (CTF) standards. For foreign lessors, financiers, or infrastructure investors, this means that payments — from lease rentals to concession fees — are subject to enhanced due diligence. Even where contractual obligations are clear, delays may occur until banks are satisfied that the documents meet KYC and compliance requirements.

For securitization and complex financing structures, these requirements can be particularly challenging. Transactions involving multiple SPVs or offshore jurisdictions may trigger extended reviews, often requiring detailed legal opinions to confirm compliance. The same applies to large-scale airport concessions and infrastructure projects financed by international institutions, where payments to foreign contractors must pass through Ukrainian banking control.

Jurvneshservice regularly assists clients in preparing the documentation required by banks, structuring transactions to minimize compliance risks, and liaising with financial institutions to ensure smooth execution of payments. Our expertise covers both aviation finance — including aircraft leases and novations — and infrastructure projects where foreign currency flows are substantial. These requirements form an essential part of Aviation Law Ukraine in practice.

In practice, early legal and compliance planning is essential. Foreign investors who understand Ukrainian banking requirements and prepare the necessary documentation in advance are far more likely to avoid delays and ensure uninterrupted cash flows.

Безпілотні авіаційні системи (БПЛА), які зазвичай називають дронами, стають важ

Unmanned Aircraft Systems (UAS), commonly referred to as drones, are becoming a crucial part of global aviation. For Ukraine, the significance of drones is even greater: they are actively used during the war. They are expected to become an essential component of post-war cargo and logistics infrastructure.

The current regulatory framework for drones in Ukraine is still developing. The Air Code of Ukraine and secondary regulations of the State Aviation Administration provide only general rules, focusing mainly on recreational and small commercial use. There is currently no comprehensive legal framework in place for large-scale cargo drone operations or integration into controlled airspace. Regulation of unmanned aircraft will soon become a significant part of Aviation Law Ukraine, especially as drones enter the cargo market.

By contrast, the European Union has already adopted a harmonized approach through EASA’s drone regulations, which classify operations by risk (open, specific, certified) and establish rules for operator registration, pilot training, and safety assessments. These standards are seen as the benchmark for international best practice.

For Ukraine, aligning its drone regulations with the EU framework will be critical to unlocking the potential of unmanned cargo aviation. Borrowing from the European model would allow Ukraine to create clear pathways for licensing drone operators, certifying equipment, and integrating drones into regular air traffic management systems.

In the post-war recovery, drones could play a vital role in:

• Cargo delivery to remote or damaged areas where conventional transport is unavailable
• Medical supply transport, ensuring rapid response in emergencies
• Support for e-commerce and logistics companies seeking cost-efficient last-mile solutions

Jurvneshservice closely follows these regulatory developments and is prepared to assist clients in navigating Ukraine’s evolving drone legislation.

Disputes are an inevitable part of the aviation industry, and Aviation Law Ukraine provides mechanisms for their resolution through arbitration and the courts. The most common disputes involve aircraft leasing contracts, insurance claims, and non-performance of supply agreements. Issues such as repossession of aircraft, recovery of unpaid lease payments, or liability under aviation supply contracts frequently lead to litigation or arbitration.

In practice, traditional aircraft leasing and finance agreements rarely refer disputes to Ukrainian forums. Instead, they are typically governed by English or New York law, with dispute resolution clauses pointing to the courts of London or New York. This reflects international market standards and the confidence of lessors and financiers in those jurisdictions. Importantly, Ukrainian law recognizes and enforces foreign court judgments, providing foreign creditors with confidence that their rights can be upheld locally.

At the same time, the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry (ICAC at the UCCI) remains relevant, particularly for disputes arising out of aviation supply and service agreements where Ukrainian parties are involved. ICAC offers an established arbitration framework, and its awards are enforceable under the New York Convention.

Another critical area is the recognition and enforcement of foreign arbitral awards and court judgments in Ukraine. Lessors and insurers frequently seek to enforce decisions obtained in London, Paris, or New York against Ukrainian counterparties. Although the legal framework supports enforcement, navigating Ukrainian court procedures requires careful preparation and local expertise.

Jurvneshservice has substantial experience in representing clients in aviation-related disputes. For example, Jurvneshservice represented Altum Air Inc., a U.S. company, in a dispute against Windrose Airlines before ICAC at the UCCI, followed by enforcement of the arbitral award in Ukraine. This case illustrates our ability to combine international arbitration expertise with local enforcement procedures — a capability particularly valuable in aviation disputes where cross-border elements and complex enforcement challenges often arise. It ensures seamless protection of clients’ rights both domestically and abroad, making Jurvneshservice a go-to firm for aviation disputes in Ukraine.

Our practice encompasses the enforcement of foreign judgments and arbitral awards in Ukraine, as well as advising on cross-border arbitration strategies and coordinating with international counsel.

Looking ahead, post-war disputes are expected to rise as airlines and lessors renegotiate lease terms, address defaults, and resolve insurance claims. Having reliable legal support with deep knowledge of international aviation law and Ukrainian enforcement procedures will be essential for market participants.

Despite the wartime challenges, Ukraine remains a strategic market for aviation investors in the medium- and long-term perspective. Its geographic location at the crossroads of Europe and Asia makes it a natural transit hub for both passenger and cargo traffic. Once skies reopen, Ukraine has the potential to re-establish itself as a key connector between the EU, the Middle East, and Central Asia.

The post-war recovery is expected to generate unprecedented demand for modern aviation infrastructure, aircraft fleets, and logistics solutions. The reconstruction of airports, development of regional connectivity, and integration of new technologies, such as drones, will create a wide range of opportunities for private and institutional investors.

For foreign airlines, lessors, and financial institutions, Ukraine offers both scale and growth potential. Airlines will compete to re-enter the market and secure valuable routes; lessors and financiers will find demand for leasing and refinancing; infrastructure investors will play a decisive role in airport concessions and cargo facilities. The EU–Ukraine Common Aviation Area Agreement ensures that all these opportunities will unfold within a regulatory framework closely aligned with European standards, providing legal certainty and stability.

Jurvneshservice is ready to guide investors through this process, combining deep knowledge of Aviation Law Ukraine with hands-on experience in financing, leasing, infrastructure projects, and dispute resolution.

For more than 30 years, Jurvneshservice has been advising clients on every aspect of Aviation Law Ukraine. Our team combines in-depth knowledge of Ukrainian regulation with international experience, providing legal solutions that meet the highest industry standards.

Our track record includes support for a wide range of aviation stakeholders:

• Airlines: assisting Ukrainian carriers in licensing, compliance, and international route rights and other issues
• Manufacturers: advising global leaders, including Boeing and Textron/Cessna, on regulatory matters and market entry
• Lessors and financiers: representing international leasing companies such as AerCap, Aircastle, BBAM, and Willis Lease Finance Corporation, as well as financial institutions including Wells Fargo Bank, Erste Group Bank AG, and American Ex-Im Bank
• Investors and infrastructure operators: consulting on airport concessions, PPP projects, and the financing of complex aviation infrastructure

Our services cover the entire lifecycle of aviation projects:

• Aircraft registration, deregistration, and airworthiness certification
• Legal opinions for leasing transactions, from standard dry leases to complex securitization schemes
• Guidance on customs, import/export, and foreign currency payments through Ukrainian banks
• Legal support for airport concessions and infrastructure investments
• Representation in disputes, including cross-border arbitration and enforcement of foreign court judgments

Beyond day-to-day legal advice, Jurvneshservice contributes to shaping global understanding of Aviation Law Ukraine through regular publications in leading international guides such as Getting the Deal Through, ICLG and others.

This unique combination of practice and thought leadership makes Jurvneshservice a trusted partner for airlines, lessors, manufacturers, banks, and investors seeking to operate in Ukraine’s aviation sector.

Ukraine’s aviation sector is facing extraordinary challenges today, yet its legal framework, strategic location, and international integration make it a market of the future. From aircraft registration and leasing to airport concessions and dispute resolution, Aviation Law Ukraine provides investors and operators with a clear regulatory foundation that will only gain importance during post-war recovery.

As the skies reopen, Ukraine will need modern fleets, resilient infrastructure, and compliant carriers to reconnect with the global market. This will create opportunities for airlines, lessors, financiers, and infrastructure investors ready to take a long-term view. As Ukraine prepares for recovery, those who establish a presence early in the aviation sector will be best positioned to benefit from the country’s strategic role as a European transit hub.

Jurvneshservice stands ready to guide clients through this transformation. With over three decades of experience in aviation law, a track record of advising leading airlines, manufacturers, lessors, and banks, and proven expertise in dispute resolution, we offer comprehensive legal support tailored to the needs of international and domestic stakeholders.

📩 To learn more about how we can support your aviation project in Ukraine, please get in touch with us at kyiv@jvs.law.