Civil Code Update

On 21 September 2025, the Verkhovna Rada of Ukraine registered the draft laws proposed by the Cabinet of Ministers of Ukraine aimed at updating certain provisions of the Civil Code of Ukraine:

Updates to the Civil Code of Ukraine: Key Changes and Innovations

Draft Law No. 14056 proposes systemic changes in the terms of the general principles and sources of private law, subjects of private relations, objects of private relations, agreements and other deeds, representation, as well as time limits and statutes of limitations.

Classification of Legal Entities

The Draft Law specifies approaches to the classification of legal entities. The most significant changes concern the organizational and legal forms of private law legal entities. The Draft Law establishes that private law legal entities can only be created in the form of companies or institutions:

  • a company – an organization established by the association of persons (participants), and
  • an institution – an organization established by one or several founders to achieve a specific purpose, which does not involve the participation (membership) of other persons.

Digital Items and Their Legal Status

The Draft Law provides detailed clarification of the concept of a digital item. Examples include virtual assets, digital content, databases, domain names, and accounts in digital systems. The Draft Law establishes that the specific legal regime of digital items is determined by law, and general provisions applicable to property apply to them unless otherwise provided by law or unless otherwise provided by law or implied by the nature of the digital item.

Review of Deeds and Agreements

The restated version of the Code provides for a review of the institution of deeds and agreements. The Draft Law clarifies the categories and interpretation of agreements, codifies principles of contract interpretation including the contra proferentem rule, and maintains the principle that a deed is valid unless its invalidity is expressly established by law or by a court. Rules regarding time limits and statutes of limitations are updated, including the calculation of periods in digital environments and the adjustment of deadlines.

Changes in Representation

Changes also concern representation, which may be exercised based on a power of attorney and/or a contract. The Draft Law provides additional protection for participants in civil transactions during martial law or other crises. These innovations aim to codify modern principles of civil law, protect the rights of investors, and ensure the stable performance of contracts.

Protection of Intangible Assets: New Rights in the Digital Environment

Draft Law No. 14057 is aimed at creating a comprehensive and effective system for the legal protection of intangible assets.

New Rights in the Online Environment

The Draft Law responds to the comprehensive digitalization of social relations and introduces several new types of rights to protect persons in the online environment:

  • Right to a Digital Likeness – protects any form of a person’s representation on the internet, including accounts, profiles, and avatars, to prevent the creation of fake profiles, theft of digital identity, and other manipulations.
  • Right to Digital Privacy – protects not only the content of communications but also the so-called “digital footprint” of a person, including metadata, search history, geolocation data, and other personally identifiable information.
  • Right to be Forgotten – establishes the individual’s ability to request the removal of outdated, inaccurate, or unlawful information about themselves from public access and search engine results, reflecting key European data protection standards.
  • Right to Protection from Deepfakes – explicitly prohibits the creation and use of artificially generated images and voices of individuals without their consent, particularly those generated using artificial intelligence, providing tools to combat disinformation and manipulation.
  • Right to Informational Peace – enshrines the right of individuals not to participate in work-related communications (calls, emails, messages) during non-working hours, addressing the blurring of boundaries between work and personal life in remote employment.

Modernizing Civil Legislation

The Draft Law is aimed at modernizing civil legislation, protecting the rights of civil law participants, and aligning the rules with current digital and economic realities.

We will continue to monitor the status of these draft laws and provide updates on all significant developments in the future Legal News.