Ukrainian law is only beginning to distinguish between business and non-business transactions, and to recognize involvement by individuals in business transactions. During the Soviet period, the Civil Code had only marginal importance in regulating commercial relationships. Only entities (cooperatives) could participate in commerce legally, and individuals could not.
As times have changed, the law has lagged behind. Courts are, however, coming slowly to recognize theoretical differences between business and non-business transactions and to treat them differently. In deciding disputes, courts will look beyond the insufficient provisions of the code to determine various features of business relationship.
Ukraine also lacks the open policy discussion needed to bring popular and professional support for market-friendly changes. If the anti-market professionals have their way, Ukraine may well adopt very conservative “economic code,” which will continue to marginalize the legal systems as the surrounding region marches on to modern times. This cannot bode well for economic growth or development of Ukraine.
(Note: This information was taken from the Contract Law chapter of the 1999 Ukraine BizCLIR report. For more information, please see the report.)
