In 2006, the International Finance Corporation (IFC), the private-sector arm of the World Bank Group, conducted a comprehensive survey of commercial disputes of businesses in Ukraine. This study, which was funded by SIDA, the Swedish International Development Cooperation Agency, is part of IFC's work to improve business opportunities and the private sector environment in Ukraine. Consistent with these aims, IFC is interested in ensuring that business disputes can be efficiently resolved so that enterprises can devote their resources to doing business.

IFC conducted the survey to gain an understanding of how business disputes are currently managed and resolved, the resources businesses devote to such disputes, the effectiveness of and satisfaction with current dispute resolution methods, the needs and priorities of businesses when resolving disputes, and the demand for alternative methods. In particular, the survey focused on the potential for developing commercial mediation in Ukraine.

The following key results were identified:

• On average businesses have 4 disputes per year mainly concerning goods and services contracts with clients and suppliers
• Disputes often trigger an end to business relationships.
• Small and medium-sized businesses suffer more from disputes while large businesses use courts more frequently and win more often.
• Businesses are dissatisfied with the court system, particularly with the enforcement of court judgments and a majority of businesses are interested in trying Alternative Dispute Resolution (ADR).
• Many businesses lack knowledge about arbitration and mediation, but those businesses who have experience in arbitration are satisfied with this procedure.

Ukraine Commercial Dispute Resolution Study