The President of Ukraine has signed Law No. 4434-IX, which abolishes the provision of the Civil Code of Ukraine (Clause 19 of the Final and Transitional Provisions) that suspended the running of limitation periods during martial law. These changes will have a significant impact on litigation strategy and legal risk management for businesses.
What Has Changed
Before the adoption of Law No. 4434-IX, limitation periods were suspended for the entire duration of martial law. This rule applied automatically, regardless of whether parties were able to exercise their procedural rights.
Once the law enters into force, the statute of limitations that had been suspended will be restored. The limitation period will continue running, taking into account the time that elapsed before the suspension.
The law will enter into force three months after the day following its official publication (as of the date of this publication, the law has not yet been officially published).
Business Impact
The restoration of limitation periods requires businesses to reassess litigation risks, review outstanding claims, and update their dispute resolution strategies. Companies that postponed legal action should act proactively to avoid missing statutory deadlines.
Practical Considerations
Key practical issues include determining the exact moment when limitation periods resume, how courts will approach the transitional period, and whether limitation periods may be restored in exceptional circumstances.
Conclusions
Law No. 4434-IX marks an important step toward the gradual return to standard civil law regulation. Businesses should begin preparing now to mitigate risks associated with the resumption of limitation periods.
