Settlement Agreement in a Ukrainian Court: Template • DSA GROUP

Not every dispute has to be taken to a court judgment. The parties may reach an agreement and end the case with a settlement agreement – on the basis of mutual concessions, on terms approved by the court which, if necessary, can be enforced. Below: what a settlement agreement is, at what stage it can be concluded, what to include in it, when the court will refuse to approve it, how much of the court fee is refunded and how the rules differ in commercial and administrative proceedings. The law is stated as at 28 October 2026.

What a settlement agreement is

The parties conclude a settlement agreement to resolve the dispute on the basis of mutual concessions; it must concern only the rights and obligations of the parties (part 1 of Article 207 of the Civil Procedure Code of Ukraine (CPC)).
In a settlement agreement, the parties may go beyond the subject matter of the dispute – for example, settle other mutual claims as well – provided the agreement does not violate the rights or legally protected interests of third parties (part 1 of Article 207 CPC).
The parties may reconcile at any stage of the court proceedings, including through mediation; the outcome of the agreement may be formalised as a settlement agreement (part 7 of Article 49 CPC).
At the preparatory hearing, the court finds out whether the parties wish to conclude a settlement agreement, use mediation, refer the case to an arbitral tribunal or settle the dispute with the participation of a judge (paragraph 2 of part 2 of Article 197 CPC).

At what stage it can be concluded

In the court of first instance – at any stage: the parties inform the court of the settlement agreement by a joint written application (part 2 of Article 207 CPC).
On appeal – regardless of who filed the appeal. When approving the agreement, the court declares the first-instance decision invalid and closes the proceedings (Article 373 CPC).
In cassation – likewise; the court declares the decisions of the first and appellate instances invalid (Article 408 CPC).
During enforcement of a judgment – the settlement agreement is submitted to the enforcement officer, who passes it within three days at the latest to the court that issued the enforcement document; the court decides the matter within ten days (parts 1–2 of Article 434 CPC).

How the court approves a settlement agreement

Before ruling, the court explains the consequences to the parties and checks whether the parties’ representatives are restricted in their right to conclude the agreement (part 3 of Article 207 CPC). Therefore, the representative’s power of attorney must include the right to conclude a settlement agreement.
The settlement agreement is approved by a court ruling whose operative part sets out its terms; by the same ruling the court closes the proceedings in the case (part 4 of Article 207, paragraph 5 of part 1 of Article 255 CPC).
Once the proceedings are closed, it is not possible to apply to the court again with a dispute between the same parties, on the same subject matter and on the same grounds (part 2 of Article 256 CPC).

When the court will refuse approval

The court issues a ruling refusing to approve the settlement agreement and continues hearing the case if (part 5 of Article 207 CPC):

the terms of the agreement contradict the law, violate the rights or legally protected interests of other persons, or are unenforceable;
one of the parties is represented by a legal representative whose actions are contrary to the interests of the person they represent.

What to include in a settlement agreement

the parties, the case number and the court hearing it;
the specific obligations of each party: what exactly, in what amount, within what time and in what manner (the amount and the bank account details, a list of property, actions);
the parties’ concessions – for example, which claims or parts of claims the claimant waives;
the allocation of court costs: if the parties have not provided for it, each party bears half of the court costs (part 4 of Article 142 CPC);
a request to approve the settlement agreement and close the proceedings in the case;
the date and the parties’ signatures (a representative must be authorised to conclude a settlement agreement).

Word the terms so that they can be enforced: the ruling approving the settlement agreement is an enforcement document and must meet the requirements for enforcement documents established by the Law of Ukraine “On Enforcement Proceedings” (part 2 of Article 208 CPC). Vague wording such as “the parties will settle the matter” risks being found unenforceable (paragraph 1 of part 5 of Article 207 CPC).

Template structure of a settlement agreement

Heading: name of the court; case number; judge; claimant and defendant – name, address, EDRPOU code or taxpayer registration number (RNOKPP).
Title: “Settlement Agreement”.
Preamble: “Claimant ___ and defendant ___, the parties to case No. ___, in order to settle the dispute on the basis of mutual concessions, have concluded this settlement agreement as follows:”.
1. “The defendant undertakes to pay the claimant UAH ___ by ___ to account ___.”
2. “The claimant waives the claims in the part concerning ___.”
3. “The court costs incurred by each party shall be borne by ___.”
4. “The parties are aware of the consequences of approval of the settlement agreement, in particular, that it will not be possible to apply to the court again with a dispute between the same parties, on the same subject matter and on the same grounds.”
Request: “We ask the court to approve this settlement agreement and close the proceedings in the case.”
Date and signatures of the parties.

Court fee: how much is refunded

If the settlement agreement is concluded before the court of first instance adopts its decision, the court decides on refunding to the claimant from the State Budget 50% of the court fee paid when filing the claim; if the agreement was reached as a result of mediation – 60% (part 1 of Article 142 CPC, part 3 of Article 7 of the Law of Ukraine “On Court Fee”).
If the agreement is concluded at the appeal or cassation stage, the appellant is refunded 50% (after mediation – 60%) of the fee paid for the respective appeal (part 2 of Article 142 CPC, part 4 of Article 7 of the Law “On Court Fee”).

If the settlement agreement is not performed

The settlement agreement is performed by the persons who concluded it, in the manner and within the time limits provided for in the agreement (part 1 of Article 208 CPC). If a party fails to perform it, the ruling approving the settlement agreement may be submitted for compulsory enforcement in the manner provided for the enforcement of court decisions (part 3 of Article 208 CPC).

Commercial and administrative proceedings

CommPC. The rules are the same: the content and approval of a settlement agreement – Article 192, performance – Article 193 of the Commercial Procedure Code of Ukraine (CommPC); refund of 50% or 60% of the court fee – parts 1–2 of Article 130 CommPC; costs split in half if the parties have not allocated them – part 4 of Article 130 CommPC. Separate articles deal with a settlement agreement on appeal (Article 274), in cassation (Article 307) and during enforcement (Article 330 CommPC).
CAP. The Code of Administrative Procedure of Ukraine (CAP) speaks not of a settlement agreement but of reconciliation of the parties. The terms of reconciliation may not contradict the law or go beyond the competence of the public authority (part 1 of Article 190 CAP). At the parties’ request, the court suspends the proceedings for the time needed for reconciliation (part 2 of Article 190 CAP). The terms are set out in a single document signed by the parties, or in an application by one party and the written consent of the other (part 3 of Article 190 CAP). The court approves them by a ruling and closes the proceedings (part 5 of Article 190 CAP); the ruling is an enforcement document (part 2 of Article 191 CAP). If the parties have not agreed on the allocation of court costs, each bears half (Article 141 CAP).

Common mistakes

vague terms without amounts, time limits and manner of performance – the court may find them unenforceable (paragraph 1 of part 5 of Article 207 CPC);
court costs not allocated – each party bears half (part 4 of Article 142 CPC);
the agreement is signed by a representative whose powers do not cover concluding a settlement agreement (part 3 of Article 207 CPC);
the terms affect the rights of third parties (part 1, paragraph 1 of part 5 of Article 207 CPC);
assuming that after the agreement is approved it will be possible to sue again over the same dispute (part 2 of Article 256 CPC).

Frequently asked questions

Can a settlement agreement be concluded after the court decision?

Yes – during appellate or cassation review (Articles 373 and 408 CPC), and also during enforcement of the decision (Article 434 CPC).

How does a settlement agreement differ from withdrawal of the claim?

A settlement agreement involves mutual concessions by both parties, and the ruling approving it is an enforcement document (part 1 of Article 207, part 2 of Article 208 CPC). If the claim is withdrawn, the defendant does not reimburse the claimant’s costs, and the defendant’s costs are recovered from the claimant on the defendant’s application (part 3 of Article 142 CPC).

Who pays the court costs?

As the parties agreed in the settlement agreement. If the agreement says nothing about it, each party bears half of the court costs (part 4 of Article 142 CPC).

This article is for information only, reflects the law as at 28 October 2026 and is not a substitute for advice on your situation.

Planning to settle a dispute amicably? An advocate will assess the terms and prepare a settlement agreement so that the court approves it and, if necessary, it can be enforced → Civil and commercial disputes · Debt recovery · Family law. If the dispute is still in court – how to answer a claim is explained in our articles on the statement of defence and the response to a statement of defence.