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The full-scale war in Ukraine has brought radical changes to everyone’s life, especially to the sphere of business. Active hostilities, missile strikes, the temporary occupation of territories, all of this creates unprecedented challenges for entrepreneurs. Many of them face an inability to fulfill their contractual obligations on time. And it is precisely here that the concept of force majeure circumstances comes to the rescue.
The term “force majeure” (or “circumstances of insuperable force”) means extraordinary and unavoidable events that could not have been foreseen. Usually, every commercial contract contains a separate clause for this case. However, you should not assume that the mere fact of war automatically releases you from liability.
Important. The mere fact of hostilities is not a universal ground for non-performance of obligations. Each case is considered individually, and the company must prove that it was precisely the war that caused the impossibility of fulfilling the terms of the contract.
At the beginning of the full-scale invasion, the CCI of Ukraine published letter No. 2024/02.0-7.1 of 28 February 2022, by which it certified that the military aggression of the russian federation constitutes force majeure circumstances.
“The military aggression of the russian federation against Ukraine… constitutes extraordinary, unavoidable and objective circumstances for economic entities,” the CCI letter states.
This document became key for many, yet it is not an absolute truth in court. You must establish a causal link between the war and the non-performance of obligations.
For example, if your warehouse was destroyed because of the war, or supply routes were blocked, these circumstances may be recognized as force majeure. In contrast, a lack of funds, as a rule, is not a force majeure circumstance unless it is directly caused by the war (for example, by the blocking of accounts in an occupied city).
Even if you are sure that your situation is force majeure, you need to follow a certain procedure.
The main function of force majeure is release from liability for a breach of an obligation. That is, you will not be forced to pay fines or penalties.
However, this does not mean the automatic termination or amendment of the terms of the contract.
Usually, if the force majeure circumstances continue for a long period (a specific term may be prescribed in the contract), the parties may agree to terminate the agreement.
Typical situations in which force majeure may terminate an obligation:
| Circumstance | Consequence of force majeure |
| Non-performance / delay | Release from liability (fines, penalties) |
| Withdrawal from the contract | Possible if it lasts a long time or is stipulated in the agreement |
| Termination of the obligation | Possible if the subject of the contract is destroyed or its performance has lost its purpose |
The war in Ukraine is unquestionably a force majeure circumstance, but its impact on a specific contract must be proven. Certifying force majeure at the CCI is an important step that will help you avoid liability. However, you should always comply with the terms of the contract, especially as regards notifying the counterparty, and gather evidence confirming the causal link. This will allow you to protect your rights and avoid disputes in the future.
War and its related circumstances may be recognized as force majeure, but they do not automatically release you from liability; proper certification is required.
Force majeure is certified by a certificate from the Chamber of Commerce and Industry; it is also important to notify the counterparty in good time of the occurrence of such circumstances.
Notify the counterparty in good time, gather evidence and obtain a CCI certificate. A delay in notification may deprive you of the right to invoke force majeure.
It may release you from liability, postpone performance, or serve as grounds for changing or terminating the contract, depending on its terms.
Yes, a lawyer will help to properly certify the circumstances and notify the other party in order to protect the business from fines and claims.
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