Team Aequo Contributed to Ukraine's New Factoring Legal Framework

The Aequo team welcomes the adoption by Parliament and the signing by the President of the Law of Ukraine "On Factoring", which was developed with contribution. 

Throughout 2023-2025, Aequo, in consortium with the renowned Washington-based International Law Institute, collaborated closely with NBU, EBRD, and Ukrainian trade finance market experts to create a modern legal environment for factoring transactions in Ukraine. 

The new Ukrainian Factoring Law, which is slated to enter into force on 30 July 2026, is built upon the best international standards enshrined in the UNIDROIT Model Law on Factoring. The new law is expected to provide a solid legal foundation for turbocharging traditional and reverse factoring volumes in Ukraine by establishing commercially flexible legal rules for such transactions, drawing a clear legal distinction between trade finance transactions and bad debt sales, laying the legal basis for the upcoming opening of the secondary market for NPLs in Ukraine, as well as introducing other legal novelties.   

Aequo project team included associates Dmytro Shudrenko and Konstantyn Dovhan, who worked under the supervision of Yulia Kyrpa, executive partner and head of the Banking & Finance practice group of the firm.