The codification of civil law in Ukraine has a relatively insignificant history, yet it is notable for its colourful evolution. In less than a hundred years, Ukraine has received three codification acts, each of which marked a significant...
moreThe codification of civil law in Ukraine has a relatively insignificant history, yet it is notable for its colourful evolution. In less than a hundred years, Ukraine has received three codification acts, each of which marked a significant epoch in the development of national culture, legal tradition and economic relations.
The first codification took place in 1922 and is associated with the establishment of Soviet power on the territory of Ukraine after the collapse of the Russian Empire in 1917. However, it is characterised by the regulation of commercial relations during the period of the 'New Economic Policy'. This period was characterised by the development of entrepreneurship to restore the economy of Soviet Ukraine, which had been destroyed by the Civil War (1918-1922). The Civil Code of 1922 reflected the restoration of copyright, the commercial status of legal entities and inheritance law, which had been abolished after the October Revolution of 1917. The Codification provides for various forms of business activity. A distinctive feature of the Code was the introduction of private property and the provision of the powers of its owner. It is important to note that after 1917, legislation was abolished and the process of formation of the legislation of socialist Ukraine began. The initial stage of this process declared the abolition of any property in communist society.
The Code comprised four parts, including the General Provisions, the Law of Property, the Law of Obligations and the Law of Succession. It also included a number of institutions, such as transactions, persons and the like. These institutions preserved not only the traditions of the pandect system but also elements of the institutional system of construction characteristic of French law.
Prior to 1917, Ukraine constituted part of the territory of the Russian Empire. Following this, although the country was formally independent, the Civil Code of the Ukrainian SSR of 1922 was in fact a reception of the Civil Code of the RSFSR of 1922, which combined two years of experience of development of the young republics under the NEP.
The second codification was the Civil Code of the Ukrainian SSR of 1963. The Code came into force on 1 January 1964 and contained ideologically verified tasks of building a socialist society in the period after the NEP. In addition to the already listed sections, the Code is significantly improved with new constructions in the field of intellectual property law, and also includes some restrictions in the field of property rights. In particular, the code enshrines individual ownership of items of personal use, restricts private ownership and significantly strengthens the role of collective ownership.
A significant innovation of the second codification was the rejection of dualism in private law, which is characteristic of France, and the regulation of relations exclusively by the norms of the Civil Code regardless of the subjects. The second codification significantly expanded the list of contracts. In particular, there appeared the contract of supply and the contract of contracting, which were characteristic of the administrative-planned system of economic management. Under such a system, the organisation of contractual relations was centrally managed, excluding any initiative and independence. In this case, the supply contract becomes the key contract of that period of time. It is beyond doubt that the Second Codification resulted in the Civil Code, which also duplicated the provisions of the Second Codification of the Civil Code of the RSFSR. This approach to rule-making is typical of the USSR era. Despite the formal independence of all 15 republics of the USSR, which were part of it, they were fully centralised and administered by a single administration. The centre of such administration was in Moscow. It is possible that all republican codifications are based on the provision of the relevant Code of the RSFSR of 1964. The Civil Code of Ukraine is an exception to this.
The proclamation of Ukraine's independence in 1991 opened the way for reforming Ukrainian legislation under new conditions. The transition to a market economy and the change of the system of governance became the benchmarks that laid the foundation for the third codification of Ukrainian civil law. In 2003, the Civil Code of independent Ukraine was adopted to replace the Civil Code of the Ukrainian SSR, which could no longer regulate market relations in the country.
The 2003 Civil Code of Ukraine restores the right to private property, provides detailed regulation of individual rights, and contains 52 contractual constructions. In comparison to the 1963 Civil Code, the third codification significantly improved the legal form of social relations. During the drafting of the third codification, the question of choosing a reference point was also raised. The provision on legal entities, which enabled the development of entrepreneurship, was a significant element of the third codification.
The 2003 Ukrainian Civil Code incorporates elements of the French Civil Code of 1806. In particular, its structure is similar to that of the Napoleonic Code, with sections on General Provisions, Persons, Things, and Property. However, the creators of the Civil Code of Ukraine of 2003 followed the path of their German colleagues and based the structure of the Civil Code on the principles of the pandect system, which is characterised by a high degree of detail in the general provisions. The Code contains, along with the law of property, also norms of the law of obligations.
The Civil Code of 2003 does not regulate family relations. The 2005 Family Code regulates these matters. Despite the proclamation of Ukraine's independence, Russia's influence on political processes in Ukraine has not been lost. On the contrary, it becomes an element of the foreign policy of the two states. Moreover, the adoption of codifications that determine the further development of Ukrainian society became one of the levers of influence on political processes in society. Ultimately, the 2003 Civil Code, in continuity with the traditions of previous codifications, became a replication of the 1996 Russian Civil Code. This was due to the fact that the political and economic development of Ukraine between 1991 and 2014 occurred within the context of Russia's interests. This entailed not only political dependence of Ukraine on Russia, but also the lawmaking influence of Russia on the development of law in Ukraine. In addition to political peculiarities in the third codification of civil law, there are also legal problems. Among them is the adoption in 2003 of the Commercial Code of Ukraine, which was intended to fulfil the role of a regulator of commercial relations in accordance with the French Commercial Code. It was not possible to achieve this objective. The adoption of the Commercial Code of Ukraine in 2003 led to the violation of systematicity in the regulation of relations, as each of the codes had its own view of things. As a result, many problematic issues remain unresolved to date. In particular, the calculation of limitation periods differs between the two codes.
Furthermore, the Economic Code of 2003 contains mainly declarative provisions, while separate normative acts prescribe the relevant procedures in detail. For instance, the Economic Code of 2003 has only five articles devoted to economic competition, while individual laws regulate in detail the procedure for the protection of fair competition in a total of more than 75 articles. A similar situation can be observed with regard to bankruptcy. In Ukraine, an independent code of bankruptcy procedures was adopted in 2018. In 2014, a new stage of Ukraine's development began, associated with integration into the European community. This process has both political and economic significance. As a result, in 2019, a group of scientists initiated the fourth codification of the civil law of Ukraine. The new civil code should include modern regulatory tools based on the signs of digitalisation of certain moments, borrowing of constructions of different legal systems, for example, trust.
Unification of all spheres of civil law is of key importance in the process of the fourth codification. It is envisaged to merge the Family Code with the Civil Code and to include a separate section on private international law. Currently, this area is regulated by a separate Act on International Private Law of 2005.
Additionally, it is proposed that the 2003 Commercial Code be repealed due to its inconsistency with the provisions of the 2003 Civil Code.