Commercial litigation solicitor

On 28 August 2025, the Commercial Code of Ukraine ceased to be in force. Relations between companies are now governed by the Civil Code and Law No. 4196-IX. This is not merely a formality: the six-month limit on the accrual of penalty interest has been removed, the rules on liquidated damages have changed, and some contracts signed ‘under the old Commercial Code’ contain references to provisions that no longer exist.

At the same time, as of 4 September 2025, the limitation period—which had been suspended during the quarantine and martial law periods (Law No. 4434-IX)—has resumed. For debts arising between 2020 and 2025, the three-year limitation period began to run from that very date. In other words, ‘old’ debts that have been sitting in the ‘to be dealt with later’ folder for years now have a deadline once again.

This is precisely where a commercial litigation solicitor is needed: to restate the claim in accordance with the new rules, check the limitation periods and choose the procedure that will yield results more quickly. We recover debts from counterparties on behalf of companies and sole traders: from the initial claim right through to the actual funds in your account. We start by auditing your documents and providing an honest assessment of the prospects.

+38 095 554-54-24 — legal consultation

What types of disputes do we handle?

• debt recovery under contracts — supply, sale and purchase, works contracts, services, lease, transport, storage, distribution;
• declaration of transactions as void — including contracts concluded by an unauthorised person or in breach of the articles of association;
• termination and amendment of contracts, disputes regarding improper performance;
• corporate disputes — between members of a limited liability company, challenging decisions of the general meeting;
• defence against unfounded claims by a counterparty, reduction of the penalty charged;
• bankruptcy — initiation, defence of the debtor, inclusion in the register of creditors’ claims;
• appeals against decisions of the Antimonopoly Committee of Ukraine, disputes concerning public procurement.

What can be recovered in addition to the principal debt

A properly drafted claim consists not of a single figure, but of four:

1. Principal debt — based on delivery notes, certificates and invoices.
2. Penalty interest. A debtor who has defaulted on a monetary obligation shall, at the creditor’s request, pay penalty interest at twice the NBU discount rate (part 3 of Article 549 of the Civil Code — a provision carried over here from the repealed Commercial Code). A lower rate may be agreed by contract.
3. A penalty — if provided for in the contract — is levied together with the penalty interest.
4. 3 per cent per annum and inflation-related losses (Article 625 of the Civil Code) — are accrued for the entire period of default, even if the contract makes no mention of them.

What has changed following the repeal of the Commercial Code. Previously, Article 232(6) of the Commercial Code limited the accrual of penalties to six months from the date on which the obligation was due. This provision no longer exists. Now the only limitation is a one-year limitation period for claims for liquidated damages (paragraph 1 of Part 2 of Article 258 of the Civil Code). For the creditor, this means that amounts which previously ‘lapsed’ after six months can now be claimed for a longer period.

The second change: as a general rule under the Civil Code, a penalty is punitive, i.e. it is charged in addition to damages (Article 624 of the Civil Code), whereas the Commercial Code provided for a set-off. This directly affects the amount of the claim.

When do you need a solicitor, and when not?

If the counterparty acknowledges the debt and simply asks for a deferral, a solicitor is not needed; it is sufficient to sign a repayment schedule. If the amount is small, the contract is in writing, and the debtor remains silent, a court order is often sufficient, and this is an inexpensive procedure.

A solicitor is needed when:

• the debtor is transferring assets — re-registering property, changing the director, or ‘selling’ equipment to a related company;
• the amount is substantial and the debtor denies the debt or files a counterclaim;
• there is a dispute in the case regarding the quality, quantity or fact of delivery — an expert assessment is required;
• there is no contract, and the relationship is confirmed only by delivery notes and correspondence;
• you are unsure of the limitation periods for old debts;
• the court has ruled in your favour but the judgment has not been enforced, and you need the judgment to be effectively enforced.

Three ways to recover a debt

Claim and negotiations

There is no mandatory pre-litigation procedure in commercial disputes. However, a well-drafted claim setting out penalty interest, 3 per cent per annum and inflation-linked interest often prompts voluntary payment: the debtor realises that the amount will only increase over time, and that they will be liable for legal costs. This also serves as evidence of good faith for any future court proceedings.

Timeframe: 2–4 weeks. This is the cheapest option, and we always start with it, provided there is no risk of asset stripping.

Court order (summary proceedings)

The quickest tool, which for some reason is often overlooked. Conditions: the debt arose under a written contract, there is no dispute as to the right, and the amount does not exceed 100 subsistence minimums — in 2026, this is 332,800 UAH (Article 148 of the Code of Civil Procedure).

What this achieves:

• the court considers the application within 5 days, without a hearing and without summoning the parties;
• the court fee is 0.1 times the minimum subsistence level, i.e. 332.80 UAH instead of 1.5 per cent of the amount;
• the court order is simultaneously an enforceable document — we can take it straight to the enforcement officer.

To be fair, there is a limitation: the debtor has 15 days to file an application to set aside the order, and the court will set it aside almost automatically. Therefore, the order for payment procedure works where the debtor does not dispute the debt but is simply stalling for time. If the order is set aside, the fee paid is credited towards the court fee for the claim.

Claim to the Commercial Court

Where there is a dispute or the amount exceeds the limit for summary proceedings. The claim is filed at the defendant’s place of business (Article 27 of the Commercial Procedure Code), unless otherwise specified by contract or law. Before filing the claim, a copy of it, together with the annexes, must be sent to the defendant, and proof of dispatch must be attached (Article 172 of the Commercial Procedure Code) — a common mistake that results in the claim being left pending.

Cases where the value of the claim is up to 100 times the minimum subsistence level (332,800 UAH) are deemed minor and are dealt with under simplified proceedings — within 60 days from the date of commencement (Article 248 of the Code of Civil Procedure). All other cases follow the general procedure: preparatory proceedings lasting up to 60 days (Article 177 of the Code of Civil Procedure) plus a hearing on the merits lasting 30 days (Article 195 of the Code of Civil Procedure). In practice: 6–12 months at first instance.

Limitation period: why 2026 is critical

The general limitation period is 3 years (Article 257 of the Civil Code). For claims relating to penalty interest and fines, it is 1 year (Article 258 of the Civil Code).

However, from 2 April 2020 to 3 September 2025, the limitation period was suspended — initially due to lockdown, then due to martial law. Law No. 4434-IX lifted this suspension, and the clock started ticking again from 4 September 2025.

What this means in practice:

• a debt arising between April 2020 and September 2025 is subject to the full three-year limitation period, which expires in September 2028;
• for debts incurred before the lockdown, the remaining period is added to the limitation period that had already expired by April 2020 — and in many cases, the limitation period will expire as early as 2026–2027;
• claims for late payment interest and penalties with a one-year limitation period ‘expire’ even faster.

The limitation period is applied by the court only at the defendant’s request. However, counting on the debtor’s lawyer not to raise this point is a poor strategy. If you have old debts on your books, it is worth calculating the time limits now, rather than when a claim is being prepared.

Court fees in 2026

The minimum subsistence level for able-bodied persons as at 1 January 2026 is 3,328 UAH. Court fees are calculated on the basis of this figure.

When submitting documents electronically via the ‘Electronic Court’ system, a coefficient of 0.8 applies — meaning the cost is 20 per cent lower. We submit all documents in this way. Court fees paid by the claimant are recovered from the defendant if the case is won.

What risks does a company face if it goes to court without a solicitor?

• Assets are siphoned off whilst the claim is being prepared. The debtor transfers ownership of assets, changes directors, or ‘sells’ equipment to an affiliated company. An application for interim measures (Articles 136–140 of the Code of Civil Procedure) is filed simultaneously with the claim — freezing of accounts and assets, and a ban on registration actions. Afterwards, there is nothing left to enforce against.
• Calculation error. Penalty interest has not been calculated at twice the NBU’s base rate; inflation and 3 per cent per annum have been omitted, or conversely, interest has been charged on items not provided for in the contract. The court dismisses part of the claims, and the court fees for that part are not refunded.
• The claim is left pending. Failure to send a copy of the claim to the defendant, failure to provide proof of dispatch, or incorrect determination of the claim value — a delay of one or two months.
• The limitation period has expired. The most costly mistake: the court will not consider the case on its merits at all.
• Winning the case but not getting paid. There is a judgement, but enforcement proceedings are stalled because the debtor ‘has no assets’. Tracing assets and working with the enforcement officer is a separate stage that must be planned before the claim is even filed.

How we work

1. Document review — a commercial litigation solicitor checks the contract, delivery notes, certificates, invoices and correspondence. We give you an honest assessment of the prospects: sometimes the answer is ‘there is insufficient evidence; first, record the debt in a reconciliation statement’.
2. Calculation of the total claim amount — the debt plus interest, penalties, 3% per annum and inflation adjustments, with a check of the limitation periods for each component.
3. Claim and negotiations — if there is a chance of recovering the money without going to court.
4. Securing the claim — freezing bank accounts and seizing assets where there are signs of asset stripping.
5. Court order or claim — we choose the procedure based on the amount involved and whether there is a dispute.
6. Representation in court, including appeals and cassation.
7. Enforcement proceedings — working with a state or private enforcement agent, tracing the debtor’s accounts and assets, and monitoring the receipt of funds.

Cost of services

For large amounts of debt, we may work on a success fee basis — payment upon actual recovery. This is discussed on a case-by-case basis.

The following are charged separately: court fees (see table above), an advance payment upon the commencement of enforcement proceedings, and, where necessary, expert witness fees.

Full price list · Pre-litigation dispute resolution

Questions and answers

Is it mandatory to send a claim before bringing a lawsuit?

No, there is no mandatory pre-litigation procedure. However, a claim accompanied by a full calculation often proves effective — and in any case serves as evidence of good faith.

How much does it cost to file a claim with the commercial court?

The court fee for a property claim is 1.5 per cent of the claim value, with a minimum of 3,328 UAH and a maximum of 1,164,800 UAH (2026). For electronic filing, the fee is 20 per cent lower. Plus the solicitor’s fee.

Which is quicker – a court order or a claim?

Court order: 5 days for consideration, a fee of 332.80 UAH, and it is immediately enforceable. However, it is only available for written contracts and amounts up to 332,800 UAH, and the debtor can set it aside within 15 days. A claim takes longer, but the outcome is more secure.

How long does a commercial case take?

Simplified proceedings (minor cases up to 332,800 UAH) — up to 60 days from the date of commencement. General proceedings — preparatory phase up to 60 days plus 30 days for consideration on the merits; in practice, 6–12 months at first instance, longer if expert evidence or an appeal is involved.

Can a penalty be recovered for the entire period of default?

Following the repeal of the Commercial Code, the six-month limitation on the imposition of penalties no longer applies. The limitation is the one-year limitation period for claims for liquidated damages and the terms of your contract.

The debt has been ‘outstanding’ since 2021 — is it too late to do anything?

No. The limitation period was suspended from 2 April 2020 to 3 September 2025; for such debts, the three-year period began on 4 September 2025. However, each obligation must be assessed separately — that is where we start.

Can a debt be recovered if there was no contract?

Yes, if there are delivery notes, certificates, invoices, payment records or correspondence — these confirm the actual business relationship. However, summary proceedings are not available in such cases: they require a written contract.

You’ve won the court case, but the debtor isn’t paying. What next?

Enforcement proceedings: tracing bank accounts and assets, seizure, and recovery. It is also possible to initiate bankruptcy proceedings — often the mere threat of this procedure is enough to compel payment.

What documents should you bring to a consultation?

The contract with its annexes, delivery notes or certificates of completion, invoices, payment orders, a reconciliation statement, correspondence with the counterparty, and an extract from the Unified State Register regarding the debtor.

Contact a commercial disputes solicitor at Svarog

Send us the contract and documents relating to the debt — we will calculate the total amount of the claim, including penalty interest, 3 per cent per annum and inflation adjustments, check the limitation periods and select the appropriate procedure: a claim, a court order or a lawsuit. And we’ll be frank if recovery is unlikely: it’s better to hear this during a consultation than after paying the court fee.

+38 095 554-54-24 · Kyiv, 7 Khoriva Street, Office 2 (Podil) · Mon–Fri 9:00–18:00