Cross-Border Disputes and Debt Recovery from Ukrainian Companies

Cross-border commercial disputes frequently arise in international trade where the underlying legal relationship spans multiple jurisdictions, legal systems, or regulatory frameworks, particularly where one of the counterparties or its assets is located in Ukraine.

In practice, cross-border disputes involving Ukraine arise in situations such as:

• breach of international supply or service agreements by a Ukrainian company
• failure to pay invoices or return advance payments
• the need to freeze or secure a debtor’s assets located in Ukraine
• parallel court or arbitration proceedings in multiple jurisdictions
• disputes involving intellectual property or digital assets
• situations where a court judgement or arbitral award needs to be enforced in Ukraine.

These disputes require coordinated legal action across several jurisdictions, close cooperation between counsel in different jurisdictions, and the development of an enforcement-focused legal strategy.

Jurvneshservice lawyers regularly assist international companies and foreign law firms in cross-border disputes involving Ukraine and represent clients in debt recovery matters involving Ukrainian companies.

Debt recovery from Ukrainian debtors is one of the most common issues faced by foreign companies trading with Ukrainian counterparties and seeking to recover debts owed to them. In such cases, obtaining a court judgment or arbitral award is only the first step. The key objective is to ensure effective recovery from the debtor’s assets.

Jurvneshservice regularly cooperates with international law firms that act as local counsel in Ukraine on cross-border disputes, arbitration proceedings, and debt recovery matters.

Foreign lawyers frequently involve Ukrainian counsel when a dispute requires:

• representation before Ukrainian courts
• enforcement of foreign judgments or arbitral awards in Ukraine
• asset tracing and recovery against Ukrainian debtors
• applications for interim measures or asset freezing in Ukraine
• legal opinions on Ukrainian law in international proceedings.

Our team works closely with foreign counsel to ensure that dispute resolution strategies developed at the international level are effectively implemented within the Ukrainian legal system.

Jurvneshservice’s experience allows us to develop a clear enforcement-oriented legal strategy tailored to the specific dispute and the location of the debtor’s assets.

At the initial stage we analyse:

• jurisdiction and dispute resolution clauses
• the existence and scope of any arbitration clause
• the location of the debtor’s assets
• the possibility of interim measures or asset freezing
• the prospects of enforcing a future decision.

This analysis allows us to determine:

• whether negotiations should be initiated
• whether urgent interim measures are required
• the most effective jurisdiction for litigation or arbitration.

The key objective is not simply to obtain a favourable decision, but to ensure real recovery of debt from the Ukrainian debtor’s assets.

One of the most common types of cross-border disputes involving Ukraine is debt recovery from Ukrainian companies.

Such disputes frequently arise in situations including:

• unpaid invoices under international supply contracts
• failure to return advance payments
• breach of international trade agreements
• refusal of a Ukrainian counterparty to perform contractual obligations.

The strategy depends on the dispute resolution clause.

If the contract contains an arbitration clause, the dispute is usually resolved through international arbitration.

If there is no arbitration clause, the dispute is usually brought before the competent state court, often in the jurisdiction where the debtor or its assets are located.

In such matters Jurvneshservice:

• coordinates legal strategy with foreign law firms
• assists with initiating proceedings in the relevant jurisdiction
• supports applications for interim measures to secure the debtor’s assets.

➡ Learn more about International Commercial Arbitration
➡ Learn more about Litigation in Ukraine

In many cases, disputes can be resolved without formal litigation or arbitration.

Pre-litigation settlement can:

• significantly reduce legal costs
• avoid lengthy proceedings
• preserve business relationships between the parties.

Jurvneshservice assists clients and their foreign counsel in preparing formal legal notices, negotiation strategies, and legal opinions designed to encourage voluntary payment or settlement.

In cross-border disputes, the most critical stage is often the enforcement of the decision and recovery of assets from the Ukrainian debtor.

Even after obtaining a judgment or arbitral award, it is often necessary to initiate recognition and enforcement proceedings in Ukraine, including, where necessary, asset freezing against the Ukrainian debtor.

➡ Related practices

• Enforcement of Foreign Court Judgments in Ukraine
• Enforcement of Foreign Arbitral Awards in Ukraine

Jurvneshservice works closely with foreign lawyers and enforcement specialists to implement cross-border enforcement strategies and support effective recovery against assets located in Ukraine.

If a foreign company is involved in a cross-border dispute involving Ukraine, needs assistance recovering debt from a Ukrainian company, or requires local counsel for litigation, arbitration, or enforcement proceedings in Ukraine, the lawyers at Jurvneshservice can develop an effective legal strategy, represent the company’s interests, or implement a strategy developed together with the company’s foreign counsel.