Draft Law on Ukraine's New Civil Code Approved
On April 28, 2023, the Verkhovna Rada of Ukraine approved draft law No. 15150 for a new Civil Code in its first reading, with 254 lawmakers voting in favor. This legislative initiative aims to recodify civil law by building on the existing Civil Code, Family Code, and the law on private international law. For context, Ukraine's current Civil Code has been in effect since 2003, and this overhaul seeks to modernize legal frameworks to reflect contemporary societal and economic needs.
Parliament Speaker Ruslan Stefanchuk, a key sponsor of the bill, noted that a substantial number of amendments will be incorporated before the second reading to address feedback and criticism. However, lawmakers rejected a proposal to extend the deadline for preparing the document for the second reading.
Major Reforms in the New Code
The proposed code will consist of nine books and introduces several significant changes to civil law. Sources of law will now include:
- national customs,
- customs of national minorities,
- local acts of legal entities.
Additionally, the code establishes a principle prohibiting contradictory behavior, expands the list of personal rights for individuals and legal entities, and introduces new types of limited property rights.
The draft also clarifies approaches to civil liability, provides for inheritance of digital assets and reparation rights, and allows wills concerning reproductive biological material. A separate book on the publicity of civil rights will regulate the registration of rights, encumbrances, and legal facts.
On the same day, the Verkhovna Rada voted to extend martial law and general mobilization in Ukraine for another 90 days, reflecting the ongoing security challenges.
This legislative step marks a crucial move to update Ukraine's legal system, addressing shifts in the socio-economic landscape and the demands of modern society. By including provisions for digital assets, the code underscores the need to adapt laws to technological progress and globalization.
The extension of martial law highlights the current reality in Ukraine, where security and stability remain top priorities. This decision shows that legal reforms are unfolding amid the backdrop of a prolonged war and the challenges facing Ukrainian society.
As the legislative landscape in Ukraine evolves, the recent approval of a new framework for automated debt recovery highlights the government's commitment to modernizing legal processes. This initiative aligns with the broader reforms introduced in the new Civil Code, aiming to enhance the efficiency and transparency of financial obligations amidst ongoing economic challenges.