Law affecting liability of domestic arbitral tribunals in Ukraine amended | Practical Law

Law affecting liability of domestic arbitral tribunals in Ukraine amended | Practical Law

Irina Nazarova (Managing Partner), EnGarde Attorneys at Law

Law affecting liability of domestic arbitral tribunals in Ukraine amended

Practical Law Legal Update 0-501-4105 (Approx. 2 pages)

Law affecting liability of domestic arbitral tribunals in Ukraine amended

Published on 04 Feb 2010Ukraine
Irina Nazarova (Managing Partner), EnGarde Attorneys at Law
In December 2009, the law "On Principles of Prevention and Counteracting Corruption" was amended and the entry into force postponed until 1 April 2010.
On 23 December 2009, Verkhovna Rada (the Parliament of Ukraine) amended Law of Ukraine No. 1506-VI "On Principles of Prevention and Counteracting Corruption" (the Law). Due to this amendment, the date of the Law's entry into force, previously fixed for 1 January 2010, was postponed until 1 April 2010.
One of the prominent features of the Law relates to the liability of domestic arbitral tribunals for corruption offences. According to the Law (and the Code of Administrative Offences and the Criminal Code), from 1 April 2010, arbitrators will incur liability for any abuse of their duties, bribery or unjust enrichment.
Although there are obvious advantages in this development (tackling corruption in domestic arbitrations has long been on the agenda of the Ukrainian legislature), commentators have noted certain irregularities in the legislation. For example, the ban on participation in business entities, and on carrying out other income-generating activities, appears excessive.