News digest | April 2026

Litigation and Dispute Resolution practice

1. President of Ukraine signs Law on digitalization of enforcement proceedings: what will change from October 2026

On April 21, President of Ukraine signed Law No. 4833-IX – a sweeping reform of Ukraine’s compulsory enforcement of court judgments system. The document constitutes a comprehensive reform, the primary objective of which is to reduce enforcement timelines and prevent debtors from concealing assets.

The Law was published on April 23, 2026, in the “Holos Ukrainy” newspaper and enters into force six months later – on October 23, 2026. Certain provisions will be phased in gradually.

The document significantly expands the capabilities of the automated enforcement proceedings system: it will interface with banks, financial institutions, and state registers, enabling faster identification of debtors’ assets and automatic lifting of attachments upon full repayment of debt. An enforcement officer will gain access to information on bank accounts, electronic wallets, fund movements, payment purposes, and even the contents of safe deposit boxes.

Documents will be transmitted exclusively in electronic form – via electronic personal accounts or other services provided for by law. Information on debtors will be entered automatically, simultaneously with the opening or resumption of enforcement proceedings. Notaries, registrars, banks, and other authorities will be required to check the Unified Debtor Register prior to performing any actions involving property.

The Law also clarifies the limits of debtor protection: where the amount of recovery does not exceed 50 minimum wages as of January 1 of the current calendar year, an enforcement officer may not levy execution against the debtor’s sole dwelling and the land plot beneath it. Exceptions apply to the recovery of alimony, compensation for damages arising from criminal offenses, and cases where the dwelling itself is the subject of a mortgage.

The most contentious provision is Part 3 of Article 56 of the Law of Ukraine “On Enforcement Proceedings.” Henceforth, an enforcement officer may attach funds and electronic money belonging not directly to the debtor, but to a third party that holds a court-confirmed debt to the debtor.

2. Ukraine’s new Civil Code of Ukraine draft clears first reading

On April 28, 2026, the Verkhovna Rada adopted the draft new Civil Code of Ukraine (No. 15150) as a basis at first reading. The purpose of the codifying act is the recodification of private law and its alignment with EU principles and standards in response to contemporary challenges of legal regulation.

The draft enshrines the principle of boni mores as a foundational principle governing private relations. Accordingly, participants in civil relations are required to observe moral norms, standards of ethical conduct, and the generally accepted social notions of proper behaviour. Breach of this principle entails the legal consequences prescribed by the Code or by contract.

For the first time at the level of a codified act, a legal regime for digital objects is introduced – objects existing exclusively in the digital environment. These comprise virtual assets, digital content and databases, 3D models, domain names, and user accounts in digital systems. The general provisions of the Code on objects of civil rights shall apply to digital objects unless their nature dictates otherwise.

In the field of obligations law, the institution of pre-contractual liability has been substantially expanded. A party that discloses confidential information obtained in the course of negotiations, conducts negotiations in bad faith, or unjustifiably terminates them, shall be liable to compensate the actual damages sustained. Where the amount of such damages cannot be precisely established, the court is empowered to award reasonable monetary compensation.

The draft further introduces the institution of judicial penalty (astreinte): upon the creditor’s application, the court may impose a periodic monetary charge for each day, week, or other period of the debtor’s delay in performing a non-monetary obligation. Payment of the astreinte does not discharge the debtor from performance of the primary obligation, and its amount shall be determined by the court having regard to the significance of the obligation to the creditor, the conduct of the parties, and the principle of good faith.

With respect to the construction of contracts, the draft codifies the contra proferentem rule: ambiguous contractual terms shall be construed against the party that proposed them. A separate provision establishes that terms of consumer contracts whose meaning is open to doubt shall be interpreted in favour of the consumer.

3. Absence of a judge’s signature on the full text of a judgment due to objective, insurmountable circumstances does not constitute an absolute ground for its reversal where the abridged judgment bears the signatures of the full bench — Grand Chamber of the Supreme Court

Where an abridged court judgment has been signed by the full bench, the absence of a judge’s signature on the full text of the judgment does not constitute an absolute ground for reversal under Article 411(1)(3) of the Civil Procedure Code of Ukraine (and analogous provisions of the Code of Administrative Procedure and the Commercial Procedure Code of Ukraine), provided that such absence is attributable to objective, insurmountable circumstances arising after the pronouncement of the abridged judgment (such as the death of a judge).

This conclusion was reached by the Grand Chamber of the Supreme Court in its judgment of 11 March 2026 in case No. 946/3565/24.

In the proceedings at issue, a person against whom a court order had been issued filed an application for its annulment. The order concerned the recovery of child maintenance for two children, and the application was grounded on an alleged infringement of the children’s rights, whose interests had not been duly considered when determining the amount of maintenance.

The court of first instance returned the application without examination. The appellate court upheld that ruling. The cassation appeal was premised on the fact that the full text of the appellate court’s judgment had not been signed by one of the three judges comprising the panel, owing to that judge’s death – a circumstance which, pursuant to Article 411(1)(3) of the CPC of Ukraine, constitutes a ground for reversal.

In examining the case, the Grand Chamber observed that the mandatory ground for reversal arising from the absence of a judge’s signature is intended to eliminate any doubt as to the composition of the court and the authentic content of the judgment. However, the legitimacy of both the judgment and the judicial panel admits of no doubt where the abridged judgment was signed and pronounced by the full bench, and the full text was signed by two judges solely by reason of the death of the third panel member.

Pursuant to Article 268(5) of the CPC of Ukraine, the date of a judgment is the date of its pronouncement, irrespective of whether the judgment pronounced is in full or abridged form.

In light of the foregoing, the Grand Chamber held that an abridged judgment equally constitutes a judicial act recording the outcome of the court’s determination of the case. While the preparation of the full text is of material importance for understanding the court’s reasoning and for the exercise of the right of appeal, the drafting thereof represents merely a stage in the written formalisation of a decision already rendered, and not a renewed act of judicial will.

4. Leasing in wartime: does the payment obligation survive the loss of the asset?

In its judgment of 25 March 2026 in case No. 916/5151/24, the Commercial Cassation Court within the Supreme Court of Ukraine formulated an important approach to the resolution of disputes arising from the performance of financial lease agreements in the context of armed hostilities – in particular, situations where the lessee is unable either to use the leased asset or to return it to the lessor.

The dispute concerned a financial lease agreement under which the leased asset –  a motor vehicle – was located in territory occupied since 24 February 2022 at the time the full-scale invasion commenced. The vehicle was seized by occupying forces, as evidenced by criminal proceedings materials and a force majeure certificate issued by the Kherson Chamber of Commerce and Industry. The lessee ceased making payments from March 2022 and brought a counterclaim seeking release from the payment obligation. The lessor, in turn, sought recovery of lease payment arrears and a penalty for failure to return the vehicle.

The Commercial Cassation Court distinguished two distinct issues –  the obligation to make lease payments and liability for failure to return the leased asset – and reached fundamentally different conclusions with respect to each.

On the question of lease payments, the Court confirmed that the lessee remains obliged to make them even following loss of access to the asset. Unlike rent, lease payments under a financial lease are, by their legal nature, reimbursement of the lessor’s acquisition costs and remuneration for the use of a financial resource, rather than mere consideration for the physical use of the asset. Accordingly, Article 762(6) of the Civil Code of Ukraine – which provides for the release of a lessee from payment for any period during which the asset could not be used – is inapplicable to financial lease agreements. The risk of accidental loss or destruction of the leased asset is allocated to the lessee by both statute and contract.

On the question of the penalty for failure to return the asset, the Supreme Court reached the opposite conclusion. The Court held that the imposition of liability under Article 785(2) of the Civil Code of Ukraine requires fault on the part of the lessee – that is, a genuine ability to return the asset coupled with a wilful failure to do so. Where the asset has left the lessee’s possession involuntarily as a result of occupation and seizure, no fault is present, and the obligation to return the asset in specie is transformed into an obligation to compensate its value by way of actual damages. The concurrent accrual of a penalty for failure to return an asset over which the debtor has no actual possession is unlawful.

Corporate Law and M&A practice

1. The European Union and Ukraine have agreed to launch a financial programme for the development of dual-use technologies

The European Commission and the Ministry of Defense of Ukraine have launched a partnership to launch a program supporting innovation in the field of dual-use technologies. The initiative was presented during the EU – Ukraine Business Summit in Brussels as part of broader cooperation in the areas of security and industrial development.

The programme provides for the financing of projects in strategic areas where civil and defence applications of technologies are combined. In particular, this includes the development of unmanned systems (aerial, land and maritime), solutions in the field of electronic protection, communications and navigation, space technologies, as well as the production of components critical to the functioning of modern technological systems.

Funding will be provided under a blended model combining EU guarantee instruments and grant support. The total volume of the programme amounts to EUR 161 million, of which EUR 140 million is provided in the form of an EU guarantee and a further EUR 21 million in the form of an investment grant. It is expected that this structure will make it possible to mobilise up to EUR 400 million in bank financing, in particular for the implementation of capital investments and the coverage of companies’ operating expenses.

The organisation and coordination of the programme’s implementation will be carried out by the Ministry of Defence of Ukraine, while the direct implementation will be entrusted to a national development institution, which will work with financial institutions and market participants.

2. The Ministry of Economy has approved unified rules for the preparation of public investment projects

The Ministry of Economy of Ukraine has approved methodological recommendations for the preparation of public investment projects. Order No. 4901 dated 10 April 2026 forms part of the public investment management reform.

The new rules provide for a transition from the practice of financing individual initiatives to the formation of a systematic portfolio of projects that meet the requirements of international partners and donors. Project preparation is to be carried out in accordance with unified approaches, allowing the standardisation of requirements for their quality and structure.

A key element is the implementation of methodological guidelines as a tool for project preparation – from the initial idea to the final investment decision. This process is organized through specialized training programs (Project Preparation Facility), which involve the development of technical, economic, and analytical components even before the financing stage.

Projects will be selected under a three-level system: the strategic level (projects from the state portfolio), the programme level (initiatives within targeted areas), and the sectoral level (projects important for specific sectors of the economy). This structure makes it possible to determine project priorities and align them with state development policies.

3. The Parliament of Ukraine has adopted a law to expand access for Ukrainian goods to the EU market

The Verkhovna Rada of Ukraine has adopted European integration Law No. 12221 aimed at approximating national legislation in the field of technical regulation and accreditation to European Union standards. The document forms part of the fulfilment of obligations within the framework of European integration and creates the conditions for further economic convergence with the EU.

The law provides for the harmonisation of approaches to conformity assessment and the functioning of the technical regulation system, which is intended to ensure alignment of Ukrainian procedures with European standards. This includes, in particular, higher product safety requirements and increased trust in certification results issued in Ukraine.

The adoption of these changes is also regarded as a step towards concluding an Agreement on Conformity Assessment and Acceptance of Industrial Products with the EU (“industrial visa-free regime”), which will allow Ukrainian manufacturers to enter the European market without undergoing additional certification procedures.

4. The National Securities and Stock Market Commission has approved a new procedure for conducting inspections on capital markets and organised commodity markets

By Resolution No. 15/21/4019/К03 dated 25 March 2026, the National Securities and Stock Market Commission approved a new procedure for conducting inspections on capital markets and organised commodity markets. The decision forms part of an update to supervisory approaches over the activities of market participants.

The document establishes the procedures for conducting inspections, defines the powers of the Commission, and sets out the framework for interaction with market participants during inspections. In particular, it regulates the preparation for inspections, their conduct, and the documentation of results.

The new approach is aimed at standardising control procedures and increasing the transparency of supervisory activities. At the same time, it defines mechanisms for identifying violations and responding to them within the regulator’s powers.

It is expected that the implementation of the procedure will strengthen the protection of investors’ rights, ensure a more predictable supervisory practice, and improve the effectiveness of oversight of market participants on capital markets and organised commodity markets.

Tax, Restructuring, Claims and Recoveries practice

1. New proposals for land taxation

On April 21, 2026, draft law No. 15123-2 “On Amendments to the Tax Code of Ukraine Regarding the Improvement of the Calculation of the Minimum Tax Liability” was registered in the Verkhovna Rada of Ukraine.

It is an alternative to draft law No. 15123-1, which we wrote about earlier.

Consequently, the new draft law provides for a different approach to the application of the reduced coefficient, which is applied during the period of martial law when determining the minimum tax liability for land plots/shares (parcels) located in areas of potential hostilities, de-occupied or temporarily occupied territories. 

In particular, it is proposed that for such land, the minimum tax liability amount specified by law should not be applied, and the coefficient should be set at 0.025. It is also planned to reduce the period of temporary occupation of de-occupied territories required for its application to five months. 

In addition to the changes proposed earlier, the draft law provides for:

• the extension of the specific rules for determining the minimum tax liability to land held under sublease;
• the inclusion of 20 per cent of the costs of subletting state-owned agricultural land plots, transferred for such use at land auctions, in the amount of taxes, duties, payments and subletting costs paid.

Both legislative initiatives are currently under consideration by parliament.

2. Introduction of benefits for military personnel regarding the import of vehicles: draft laws have been registered 

Draft Law No. 15195 dated April 24, 2026, and its alternative, draft Law No. 15195-1 dated April 29, 2026, have been registered in the Verkhovna Rada of Ukraine.

They propose that, for the duration of martial law in Ukraine, transactions involving the importation by military personnel of certain categories of vehicles into the customs territory of Ukraine be exempt from VAT and excise duty.

This exemption will apply on a one-off basis, and the following will be eligible for it:

• active military personnel mobilised after February 24, 2022;
• military personnel serving under contract.

Both documents stipulate that the exemption described will not apply to vehicles:

• intended for the carriage of goods and subject to transport tax;
• originating from an occupying state and/or an aggressor state, or imported from their territory or from the occupied territory of Ukraine.

The application of this exemption will result in the inability to dispose of and/or transfer the use of (in particular, on the basis of a power of attorney) such vehicle to third parties for a period of three years from the date of its state registration.

The draft laws differ from one another in the proposed duration of the exemption – 90 days (draft law No. 15195) or one year (draft law No. 15195-1) following the termination or lifting of martial law in Ukraine respectively.

3. Abolition of personal income tax on “eSadok” payments: legislative amendments have been proposed

On April 24, 2026, draft law No. 15193 “On Amending Article 165 of the Tax Code of Ukraine Regarding the Exclusion of the Amount of the Monthly Cash Payment “eSadok” from the Taxpayer’s Taxable Income” was registered in the Verkhovna Rada of Ukraine.

It proposes to add the amount of the monthly “eSadok” cash payment, provided in accordance with the Law of Ukraine “On State Assistance to Families with Children”, to the list of income not included in the total monthly (annual) taxable income.

Consequently, in case the relevant law comes into force, personal income tax will not be levied on the such payments.

4. Changes to the environmental tax declaration form are planned

On April 17, 2026, the revised draft order of the Ministry of Finance of Ukraine “On the Approval of Amendments to the Environmental Tax Declaration Form” was published.

It proposes, in particular, the following changes to the environmental tax declaration form:

• to add a field to the declaration for residents of Defence City to tick, along with a corresponding note regarding the entities completing it;
• to remove from the declaration the line containing the code of the local authority and the administrative-territorial unit in which the sources of pollution are located;
• to add lines to certain annexes of the declaration for providing information on the permits received by the taxpayer.

5. Review of the Supreme Court’s practice on tax issues for March 2026 

On April 23, 2026, the Supreme Court published an overview of the current judicial practice of the Administrative Court of Cassation within the Supreme Court for March 2026.

It highlights certain legal positions in the tax sphere, in particular:

• Specifics of determining the additional benefit in the sale of property: in its judgement dated February 24, 2026, in case No. 320/46182/24, the court concluded that if the sale price (market price) of the property is higher than the price specified in the investment agreements, and the contractual value of the share in the authorised capital is higher than the nominal value, then such a difference is not considered income of the individual purchaser in the form of additional benefit and is not subject to taxation.
• Taxation of the amount of debt forgiveness on a foreign currency mortgage loan: in its judgement dated March 04, 2026, in case No. 320/41763/24, the court considered the circumstances under which the amount of debt on a foreign currency mortgage loan was written off by the creditor in 2020. In the tax authority’s view, the amount of the forgiven debt in such a case is taxable as an additional benefit, since the provision of the Tax Code of Ukraine in force at that time regarding the exemption of such amounts from taxation contained a direct reference to a special law on the restructuring of obligations under foreign currency loans, which came into force only after the debt had been written off.

The court emphasised that, since the adoption of this law the state had closed its own legislative loophole and expressly provided for the exclusion of such income from the personal income tax base, requiring the taxpayer to pay personal income tax on income arising prior to the adoption of this law constitutes tax discrimination.