Timchenko Katerina Legal advice on doing business in Ukraine

Case Studies:

Tu, 11 January 2011In Ukraine INCOTERMS application with respect to both
internal and external supplies is regulated by the relevant legislation
- provisions of the Code of Commercial Procedure of Ukraine, and
reference to them in a Supply Agreement makes up the essence of the
agreement. However, in Ukraine the President's Decree N 567/94 dated
04.10.94 is effective too, pursuant to which INCOTERMS shall be applied
in Ukraine only after the official announcement in the state printed
publicity materials. Such an announcement has not yet been made as of
today, therefore, the latest issue of INCOTERMS 2010 in Ukraine shall
not be adhered to at the moment. The Customs of Ukraine has commented
on the matter in the following way: if an external economic supply
contract sets forth that the governing law is not that of Ukraine,
INCOTERMS 2010 may be applied. Nevertheless, the definition of the
governing law by the Customs of Ukraine is characterized by a rather
desktop approach: besides the remark on the governing law that shall
not be that of Ukraine, the relevant contract has to be drawn up in any
other country, but Ukraine.