Harmonization of Ukrainian Bankruptcy Legislation with European Union Standards

Abstract

The article examines current issues related to the adaptation of Ukrainian bankruptcy legislation to the standards of the European Union in the context of ongoing European integration processes. It is established that the adoption of the Code of Ukraine on Bankruptcy Procedures constituted an important stage in the reform of the national insolvency regulatory framework and significantly aligned Ukrainian legislation with European standards. Particular attention is paid to the analysis of the introduction of personal bankruptcy procedures and their significance for the development of a modern system of protection of the rights of debtors and creditors.

The study explores the main provisions of Directive (EU) 2019/1023 on preventive restructuring frameworks, debt discharge, and measures to increase the efficiency of insolvency procedures. It is noted that an important step toward the implementation of this Directive was the introduction in Ukraine of a preventive restructuring procedure aimed at preventing insolvency before the commencement of bankruptcy proceedings. The article also reviews scholarly approaches to assessing the compliance of the new provisions of the Code of Ukraine on Bankruptcy Procedures with the requirements of European legislation.

Special attention is devoted to issues of cross-border insolvency and the significance of Regulation (EU) 2015/848 on insolvency proceedings. The article examines the mechanisms designed to prevent abuses in the choice of jurisdiction for opening insolvency proceedings, as well as the criteria for determining a debtor’s centre of main interests (COMI). It emphasizes the importance of taking these approaches into account in the further improvement of Ukrainian legislation, particularly in light of the growing number of cross-border insolvency cases associated with martial law and migration processes.

The provisions of Directive (EU) 2026/799 on the harmonization of insolvency procedures are also analyzed, and its significance for the formation of a modern model of insolvency law in Europe is determined. The implementation of the relevant reforms will contribute to increasing the efficiency of the national bankruptcy system, strengthening investor confidence, and creating appropriate conditions for the post-war recovery of Ukraine’s economy.