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Judges of Ukrainian arbitration courts and mediators gather in Kyiv on Nov. 11 to discuss alternative dispute resolution. Anya Korbut Price, speed and honesty touted as benefits of informal mediation

Ukrainians and expatriates now have an opportunity to solve their disputes without going to court or abroad, with the opening of a Mediation Center by the International Chamber of Commerce in Kyiv earlier this fall.

While the center has yet to hear its first case, the founders believe it will prove a popular alternative to Ukrainian state courts, widely derided for their corruption, and international arbitration, which can be very expensive.

“Ukrainian state court means corruption,” said Svitlana Kheda, head of the Mediation Center. “The idea of arbitration itself was developed as an alternative to state courts which are corrupt, expensive and time-consuming.”

The use of impartial, professional mediators to resolve disputes is widespread in Great Britain and the United States, and has been for decades.

In Ukraine, the idea started catching on after 2006, when international programs started giving money for educational training. Since then, several mediation centers have opened.

But the recently established Mediation Center is the first to open under the auspices of the International Chamber of Commerce, a respected international institution resolving disputes.

Besides impartiality, mediation has several other advantages.
A mediator works with each of the conflicting parties with the aim of finding a compromise solution.

Svitlana Kheda

He or she does not make the final decision, but helps the parties to come to a consensus or a compromise. Both sides can come away feeling they haven’t lost.

The win-win feeling after conflicts can help soothe relations among combatants, which is good for business and for peace of mind. Despite reaching decisions that are not obligatory on either party, up to 90 percent of parties institute the mediators’ solution voluntarily, according to international studies.

Another advantage of mediation is that it allows solving conflicts quickly. The mediation process may take as little as two hours or two days, while litigating a dispute through the arbitration process lasts for several weeks and a trial in a state court may take several years.

The speedy resolution helps keep business humming without costly impediments, especially important in construction and infrastructure projects.

Price is also an advantage – especially for small-to-medium sized businesses, or those involved in labor or family disputes.

“Hourly bills of lawyers do not depend whether it is in state court, arbitration or mediation,” Kheda said. “A fee of a junior lawyer in Ukraine is 100 to 130 euro per hour, while a council has 290 euro and for a partner it could be 360 to 400 euro depending on the law firm.”

Yet another advantage to informal mediation is that it can be used not only by Ukrainian citizens but also by foreigners living in Ukraine.

Ukraine’s law on arbitration courts does not allow the hearing of cases with a foreign element, including when one of the parties is a foreign citizen, a company registered abroad or the object in dispute is real estate located abroad.



The only choice expatriates in Ukraine used to have was either going to the Ukrainian state court or applying for arbitration or mediation abroad. Now mediation in Ukraine was added to the list of their options.

Last, but not least, confidentiality is guaranteed in the mediation process.

But will people involved in disputers really start using the Mediation Center?

“We expect our center will be popular among foreigners,” Kheda said. “If an expatriate has a business in Ukraine, it will be much cheaper for him or her to get a case heard here than to go to France, Great Britain or the U.S.”

Kyiv Post staff writer Oksana Faryna can be reached at faryna@kyivpost.com.