12/06/2026
Amendments to the Civil Code of Ukraine on the Regulation of Factoring Enter into Force on 30 July
The Verkhovna Rada of Ukraine has adopted amendments to the Civil Code of Ukraine concerning the legal regulation of factoring transactions.
Under Law No. 4863-IX, Article 1077 of the Civil Code of Ukraine has been restated in a new version. According to the updated approach, under a factoring agreement, the factor transfers or undertakes to transfer funds to the client by paying the price of the monetary claim right in exchange for remuneration, while the client assigns or undertakes to assign to the factor its monetary claim against the debtor.
It is also stipulated that the legal regulation of factoring relations shall be governed by the Law of Ukraine “On Factoring”.
In addition, Articles 1078–1086 of the Civil Code of Ukraine have been repealed under the said Law.
The Law will enter into force and become effective on 30 July 2026.
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