Restoration of limitation periods from September 2025: what businesses need to know

Starting from September 4, 2025, the statute of limitations in Ukraine will resume its course after having been “on pause” for a long time due to the COVID-19 pandemic (since April 2, 2020) and later during the period of martial law (since February 24, 2022).
This new legislative regulation became possible following the adoption of the Law of Ukraine No. 4434-IX “On Amendments to Section ‘Final and Transitional Provisions’ of the Civil Code of Ukraine regarding the Renewal of the Statute of Limitations.”

Legislative framework: Civil Code and special law

• Article 256 of the Civil Code of Ukraine defines the statute of limitations as the time period during which a person may file a claim in court for the protection of a civil right or interest.
• Article 257 of the Civil Code of Ukraine establishes the general statute of limitations at three years.
• Article 258 of the Civil Code of Ukraine sets out special limitation periods: one, four, five, or ten years depending on the type of claim (for example, one year for recovery of penalties).
• Law No. 4434-IX of May 14, 2025, signed by the President on June 2, 2025, cancels the suspension of limitation periods during martial law. The new rules shall enter into force three months after their official publication — i.e., from September 4, 2025.

Consequences for business: legal entities and entrepreneurs

Debtors

• If a creditor “missed” the limitation period, the debtor is lawfully entitled to avoid performance of the obligation, provided such grounds are raised as a defense against the claim (Article 267 of the Civil Code of Ukraine).
• For enterprises, the expiration of the limitation period is grounds for recognizing debt as bad and writing it off.

Creditors

• There is a risk of losing the right to recover debts: once the right to sue has expired, recovery will no longer be possible.
• The limitation periods will resume on September 4, 2025, which means that the remaining time left before suspension will continue to run from this date.

Example:
A contract between two companies had a due date of February 1, 2020. The statute of limitations was three years, originally expiring on February 1, 2023. However, it was suspended. The entire suspension period is not counted, and the remaining term resumes on September 4, 2025.

Tax and accounting aspects

• Pursuant to subpar. “a” of par. 141.1 of the Tax Code of Ukraine, debts for which the limitation period has expired are considered bad debts and may be written off, affecting tax accounting.

How businesses should prepare: practical steps

1. Inventory of receivables and payables.
   Review all debts — both your own and those of clients. Identify cases where the limitation period is nearly expired.
2. Legal assessment of contracts and disputed obligations.
   Re-examine documents where the risk of expiration arises. Check whether the limitation period can be suspended or extended (e.g., if the debtor partially acknowledged the debt or performed obligations).
3. Preparation for litigation or debt write-off.
   Creditors should promptly file lawsuits if the term is close to expiry. Debtors should be prepared to defend themselves by invoking expiration.
4. Proper documentation of bad debt write-offs.
   Since expired claims qualify for tax write-offs, it is crucial to properly document the process and maintain supporting records for audits.

Specifics of calculating limitation periods after renewal

• The portion of time remaining when the suspension began will resume counting from September 4, 2025. Example: if 5 months were left before expiration at the moment of pause, they will be counted anew beginning from that date.
• Courts also retain discretion to restore limitation periods if valid reasons exist for missing them (Article 261 of the Civil Code of Ukraine and special provisions).
• If the debtor was a participant in military operations, the court may consider this a valid reason for restoring the period.

Foreign trade contracts

• Renewal of limitation periods does not affect limitation periods in foreign trade activity, which had already resumed nearly 2 years earlier (from August 1, 2023).

Conclusion

The resumption of the statute of limitations is a critical moment for businesses. Companies need to carefully assess all legal and accounting consequences, mobilize their legal departments, and act proactively. Creditors are advised not to delay in filing claims to recover receivables, while debtors should document lawful defenses against outdated debts.

It is always better to seek qualified legal advice in advance than to search for reasons to restore missed deadlines later.

Short legislative references:

• Law of Ukraine No. 4434-IX “On Amendments to Section ‘Final and Transitional Provisions’ of the Civil Code of Ukraine regarding the Renewal of the Statute of Limitations.”
• Articles 256–258 of the Civil Code of Ukraine (statute of limitations and its types).

Author: Ihor Yasko, Managing Partner of JSC “Legal Company WINNER”, Ph.D. in Law