On June 6, 2012 the Verkhovna Rada of Ukraine adopted, and on June 27, 2012 the President of Ukraine signed the Law of Ukraine "On ratification of the Convention on International Interests in Mobile Equipment and the Protocol to the Convention on International Interests in Mobile Equipment on matters specific to Aircraft Equipment" ¹ 4904-IV.
In accordance with paragraph 2 of Article II of the Aircraft Protocol to the Convention on International Interests in Mobile Equipment, Convention and Protocol shall be known as "the Convention on International Interests in Mobile Equipment as applied to aircraft objects".
The aim of the Convention and the Protocol is to assist in financing of the acquisition and use in the efficient manner of the equipment which has a high value or particular economic significance.
To achieve this, the Convention provides a unique international legal regime to protect the interests of the creditor through the establishment of remedies and an international registration system. It is assumed that such a regime would reduce costs of financing of such equipment and have a positive impact on financing in the field of aviation. At the time of ratification Ukraine has made some important reservations.
Thus, in accordance with paragraph 1 of Article 50 of the Convention, Ukraine has declared that the provisions of this Article shall not apply to internal transactions with regard to all types of objects.
At the same time, in accordance with paragraph 2 of this Article some of its provisions continue to apply regardless of the reservations made upon ratification by the state. It relates primarily to the provisions that affect the registration and priority of a registered interests.
Moreover, in accordance with Article 53 of the Convention Ukraine has determined that the competent court in Ukraine will be a court of general jurisdiction.
Also, according to paragraph 2 of Article 54 of the Convention, Ukraine has made a statement that "Any remedy, which the creditor has in accordance with any provision of the Convention and which are not clearly defined in the Protocol as a means of protection, followed by an appeal to the court, shall apply without permission of the court".
Furthermore, Ukraine has determined that it will apply Article VIII "Choice of Law" and Article XIII "De-registration and export request authorisation" of the Protocol, and will not apply Article XII "Insolvency assistance" of the Protocol.
The application of two articles referred suggests that the parties to the legal relationships that are affected by the Convention and the Protocol, may choose the applicable law, and that there is a creditor's remedy as regards to de-registration and export of aircraft as provided for in paragraph 1 of Article IX of the Protocol.
Ukraine has also made a reservation that "…Ukraine ... will apply Alternative A of Article XI of the Protocol as a whole on the procedures of bankruptcy and the waiting period for the purposes of Alternative A of Article XI of the Protocol shall not exceed 60 calendar days".
It is also stated that authorized entry point, through which information required for registration will be transmitted to the International Registry, is the State Aviation Administration of Ukraine.
It is expected that the Convention and the Protocol will enter into force for Ukraine, three months after the date of deposit of its instrument of ratification.
For more detailed information, please contact Denys Rabomizo, partner,
by the phone +38 (044) 362 04 11 or e-mail