The difficulties in collecting debts outside of one’s own country are apparent. This process is even more complicated if there are economic, political or other problems in a country you have a debtor in. So now we want to talk about the situation when your debtor is located in eastern Ukraine, on the territory of ATO (Counter-terrorist operation) zone.
First of all, you must remember that according to the Article 2 of Law of Ukraine “On Temporary Measures during the anti-terrorist operation” it is forbidden to charge penalties and interest on the principal amount of debt of legal entities and physical persons – entrepreneurs who performs (or performed) the economic activity in the territory of ATO zone. It does mean, you can claim the main amount of the debt only without any interests, fees, penalties.
Another problem is related with courts. Though it is theoretically possible to go legal and have a court sitting against such a debtor in the capital (Kiev), debtor has to be notified about such court sitting. In the same time Ukrainian mail confirms it is not able to deliver mail in some locations in Luhansk and Donetsk regions. That means it is impossible to deliver the subpoena to the debtor and it’s impossible to bring the debtor on the court hearing legally. So, generally speaking, there is no sense now to go legal against debtors situated or registered in Donetsk and Luhansk region in the zone of ATO. There is also no way to execute court decision on the territory of ATO.
Despite of all the difficulties, it does not mean you should forget about your debt. Some businesses are lost, but some companies registered in ATO zone, changed their locations or opened new offices in other cities around Ukraine and continue their business activity. GCS Ukraine may collect debt from such debtors in some cases.
In other words it is always worth to give a try.