On 7 August 2019, Ukraine became one of 46 countries-signatories of United Nations Convention on International Settlement Agreements Resulting from Mediation (known as “Singapore Convention”). The other signatories include USA, China, South Korea, India and Brunei.
One of the major advantages of Singapore Convention is the possibility to enforce international settlement agreements resulting from mediation in other member states. One should bear in mind that Convention shall apply only to an agreement resulting from mediation and concluded in writing by parties to resolve a commercial dispute which, at the time of its conclusion, is international. Convention envisages a step-by-step mechanism for enforcement of the mediation agreement and a list of grounds for refusal of such enforcement. At the same time, the Convention shall apply only to settlement agreements concluded after the date when the Convention enters into force for the respective member state.
Ukraine has already initiated preparation for ratification of the Convention. This means that Singapore Convention has a good chance not only on paper but also in reality to become an effective tool in the hands of the Ukrainian business community for enforcement of mediation agreement abroad.