SC Representatives Participate in Preparation of Draft Law on Singapore Convention Ratification

Yesterday, on 1 August 2019 the United Nations Convention on International Settlement Agreements Resulting from Mediation was signed in Singapore; thus it may be ratified by any state. This document was called Singapore Convention. Ukraine started the preliminary preparation to the ratification of this important document, and working group on the preparation of relevant document was established under the Ministry of Justice of Ukraine in spring.

The group also includes representatives of the Supreme Court staff: Mykhailo Shumylo, the Deputy Head of the Department for Analytical and Legal Work of the Supreme Court – the Head of the Legal Sub-Department (IV), and Yuliia Vavreniuk, the Head of the Division for Studying Case Law of the Legal Sub-Department (II) of this Department. The working group, particularly, dealt with the draft law on the ratification of the Convention at its session on 31 July 2019.

Mykhailo Shumylo remarked that mediation was widely applied in different countries. Unfortunately, the institution of mediation in Ukraine is not regulated at legislative level, though, the discussion of this issue among lawyers has been held for a long time. He added that mediation was not only an extrajudicial mechanism for the solution of insignificant cases. It may also be applied for settling commercial disputes in the sphere of international trade. Participants of global markets apply frequently this way of settling disputes. The adoption of Singapore Convention and Ukraine’s readiness to ratify it also testify the effectiveness and demand for such an extrajudicial type of settling disputes.

Mykhailo Shumylo explained that Singapore Convention was aimed at ensuring appropriate status to agreements on the settlement of commercial disputes by means of mediation in line with judgment of international commercial arbitrations, as it was determined in the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958). He considers that signing and ratification of Singapore Convention by Ukraine would let simplify and accelerate the settlement of commercial disputes in the sphere of international economical relations, as well as integrate our country into global economical processes.

For reference. Pursuant to the text of Singapore Convention, it applies to an agreement resulting from mediation and concluded in writing by parties to resolve a commercial dispute (“settlement agreement”) which, at the time of its conclusion, is international.

“Mediation” means a process, whereby parties attempt to reach an amicable settlement of their dispute with the assistance of a third person or persons (“the mediator”).

Each Party to the Convention shall enforce a settlement agreement in accordance with its rules of procedure and under the conditions laid down in Singapore Convention. Thus, after the ratification of this Convention, the work for its appropriate implementation will be continued.