The following notification, dated 19 August 2025, from the delegation of Ukraine, is being circulated to Members of the Council for Trade in Services.

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1  MEMBER NOTIFYING:

Ukraine

2  NOTIFICATION UNDER:

Article III:3 of the General Agreement on Trade in Services

3  DATE OF ENTRY INTO FORCE:

30 July 2025. The Law shall apply from 30 July 2026, but not earlier than the date of enactment of the Law amending the Civil Code of Ukraine concerning the regulation of relations in the field of factoring.

3.1  Duration:

Indefinite

4  AGENCY RESPONSIBLE FOR ENFORCEMENT OF THE MEASURE:

National Bank of Ukraine

5  DESCRIPTION OF THE MEASURE:

Full title of the Law:

The Law of Ukraine No. 4466-IX "On Factoring" of 03 June 2025.

Brief summary of the content with a focus on the potential effect on services trade:

The Law aims to enhance the regulatory framework related to factoring in Ukraine and improve certain provisions of existing legislation governing the provision of factoring services.

The Law provides for the following:

·_        the implementation of the provisions of the Model Law on Factoring, developed by the International Institute for the Unification of Private Law (UNIDROIT) into Ukrainian legislation, thereby aligning Ukraine’s regulation on factoring with internationally recognized best practices;

·_        the introduction of state registration of transfers of receivables to reduce the risk of fraud in factoring transactions and enhance transparency in the factoring market;

·_        a definition of the scope of application of the Law, including transactions involving the assignment of monetary claims that are excluded from its application;

·_        the definition of the key elements of factoring agreements;

·_        the establishment of rules on the priority of claims in the transfers of monetary receivables;

·_        the differentiation of the regulation of trade factoring from transactions involving financial indebtedness.

The Law also introduces clarifying amendments aimed at aligning the provisions of relevant legislation of Ukraine, including amendments to the:

Law of Ukraine "On Financial Services and Financial Companies" addressing the specific features of the transfer of receivables arising under financial service agreements, and enabling financial company to combine factoring services with other types of financial services;

Law of Ukraine "On Private International Law" clarifying the scope of the applicable law governing factoring agreements;

Law of Ukraine "On Consumer Lending" introducing a prohibition on the transfer of receivables under consumer credit agreements to a financial company authorized to provide factoring services.

6  MEMBERS SPECIFICALLY AFFECTED, IF ANY:

None

7  TEXTS AVAILABLE FROM:

Official website: https://zakon.rada.gov.ua/laws/show/4466-20#Text (available in Ukrainian).

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