As of 1 August 2023, Ukraine joins the ranks of the European Union, Mexico, Montenegro, Singapore, and the United Kingdom as a Contracting State to the Hague Convention on Choice of Court Agreements 2005 (hereinafter referred to as the “Choice of Court Convention”).
The Choice of Court Convention holds significant implications both for Ukraine and the existing Contracting States. It establishes a regulatory framework that encourages international trade and investment by offering predictable outcomes for parties involved in international disputes.
Generally speaking, under the Choice of Court Convention, when parties to a cross-border contract mutually agree to designate a court(s) in a country that is a Contracting State, the court(s) of other Contracting States are obliged to suspend or dismiss parallel proceedings and recognize and enforce judgments rendered by the chosen court.
This can streamline the dispute resolution process for corporations and legal professionals. Taking into account the economies of each Contracting State may provide insights into how this might affect their legal commercial relations.
The inclusion of Ukraine in the roster of Contracting States can provide fresh opportunities for international businesses seeking to invest in or trade with Ukraine. The country’s legal profession can also leverage this to promote fair, efficient and reliable legal services within the international commercial litigation landscape.
Facts derived from Hogan Lovells’ insights at JD Supra.