Ukraine: legal requirements and validity of electronic signatures

This article explores the legality of electronic signatures in Ukraine, covering the key laws, standards, and requirements. It also looks into the practicalities of using electronic signatures in various industries and provides a list of leading eSignature providers in the country.

Main laws governing electronic signatures in Ukraine

The legality of electronic signatures in Ukraine is primarily governed by several key laws:

1. Law of Ukraine No. 2155-VIII of October 05, 2017 On Electronic Identification and Electronic Trust Services: This law is the cornerstone of electronic signature regulation in Ukraine. It ensures that electronic signatures are legally recognised and enforceable in Ukraine. You can find the full text of the law here. 
2. Law of Ukraine of May 22, 2003 No. 851-IV On Electronic Documents and Electronic Document Management: This law establishes the legal and organisational framework for the use and management of electronic documents, ensuring they are recognised as valid and legally binding. It defines key terms and sets the standards for the secure exchange, storage, and handling of electronic documents in both the public and private sectors. You can find the full text of the law here. 
3. Civil Code of Ukraine (2003) No. 435-IV: While this code traditionally deals with written agreements, it now recognises electronic signatures as valid, provided they meet specific legal standards. Article 207 of the Code recognises electronic signatures and electronic documents as valid and legally binding for executing transactions. It specifies that a transaction is considered in written form if it is recorded in electronic documents or communicated through electronic means. Additionally, the use of electronic signatures or other digital equivalents of handwritten signatures is acknowledged, provided they meet the legal requirements or the parties' agreements.

These laws establish the framework for the use of electronic documents and signatures in Ukraine. They ensure that electronic signatures are legally binding, provided they meet certain conditions. The framework also affirms that electronic documents signed with a qualified electronic signature (QES) have the same legal force as paper documents with handwritten signatures.

Electronic signatures in Ukraine: types and legal standing

The law defines three types of electronic signatures, which include:

1. Simple electronic signature (SES): This is the most basic form of electronic signature. While it is easier to use, it does not offer the same level of security and legal recognition as other forms.
2. Advanced electronic signature (AES): This signature type offers more security as it is uniquely linked to the signatory and can detect any changes made to the signed document.
3. Qualified electronic signature (QES): A QES is created using a qualified electronic signature creation device and is backed by a qualified certificate issued by a trusted service provider. This type of signature holds the highest level of legal recognition in Ukraine and it is equivalent to a traditional “wet-ink” signature in terms of legal standing.

Relevant standards and conditions for legally binding electronic signatures in Ukraine

For an electronic signature to be legally binding in Ukraine, it must meet specific standards:

1. Identification and authentication: The electronic signature must be uniquely linked to the signatory and be capable of identifying the signatory. 
2. Consent and intent: The signatory must have the intent to sign the document electronically and must consent to use an electronic signature for the transaction.
3. Control: The method used to create the electronic signature must be under the sole control of the signatory.
4. Association with the document: The electronic signature must be logically associated with the document, ensuring that any subsequent changes to the document are detectable.
5. Integrity of the document: The signed document must remain unchanged after the signature is applied. Any changes to the document would render the signature invalid.
6. Reliability: The method used to create the electronic signature must be reliable and appropriate for the purpose for which it was generated.
7. Non-repudiation: The signature process should provide proof of signing that the signatory cannot later deny.

For qualified electronic signatures, which offer the highest level of security and legal assurance and are equivalent to handwritten signatures, the following additional requirements must be met:

8. Certification by a qualified trust service provider: For a QES to be legally binding, it must be accompanied by a qualified certificate issued by a qualified trust service provider (TSP) recognised by the Ukrainian government. 
9. Use of qualified electronic signature creation devices: Qualified electronic signatures require the use of a qualified electronic signature device (QESD), which is a secure tool for creating electronic signatures.

A QES is mandatory for certain types of documents, such as those related to government contracts or official business filings.

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Find out more about eSignature laws in Eastern Europe:

• Legal requirements for eSignature in Croatia
• Legal requirements for eSignature in Cyprus
• Legal requirements for eSignature in Czechia
• Legal requirements for eSignature in Estonia
• Legal requirements for eSignature in Hungary
• Legal requirements for eSignature in Latvia
• Legal requirements for eSignature in Lithuania
• Legal requirements for eSignature in Poland
• Legal requirements for eSignature in Romania
• Legal requirements for eSignature in Slovakia

Circumstances where an electronic signature may not be valid in Ukraine

While electronic signatures are widely accepted in Ukraine, there are some circumstances where they may not be valid: 

1. Lack of certification: If an electronic signature is not backed by a qualified certificate from an accredited TSP, it may not be recognised as legally binding, particularly in formal or high-stakes agreements.
2. Incorrect use of signature types: Using a simple electronic signature in situations that require a qualified electronic signature can render the signature invalid. For example, government-related documents typically require a QES.
3. Tampered documents: If there is any indication that the document has been altered after being signed, the electronic signature may lose its validity. Advanced and qualified electronic signatures help prevent such tampering by detecting any changes made post-signature.
4. Specific industry requirements: Certain industries may have additional requirements for electronic signatures. For instance, the financial and legal sectors often demand higher security standards, and failure to meet these standards can invalidate a signature.
5. Specific legal requirements: Certain legal documents, such as those related to inheritance, may require handwritten signatures or notarization.

It's important to consult with legal experts or relevant authorities when dealing with high-value or sensitive transactions to ensure the validity of electronic signatures in specific contexts.

Recent court decisions on electronic signatures in Ukraine

Ukrainian courts have consistently upheld the validity of electronic signatures in various cases, reflecting the growing adoption of digital tools in business and legal processes. Notably, the Supreme Court ruling of May 3, 2022, in case No. 205/5252/19 (proceedings No. 61-1125sv22) reaffirmed the legal status and recognition of digital and qualified electronic signatures, provided they comply with relevant legislation and legal requirements. You can read the judgement here. 

This case has set a significant precedent, underscoring the importance of using the correct type of electronic signature for specific legal documents. The ruling emphasised that while electronic signatures are broadly accepted, using the appropriate type of electronic signature is essential in high-stakes legal contexts to ensure enforceability.

Forthcoming legislation on electronic signatures in Ukraine

Currently, there are no major legislative changes specifically targeting electronic signatures on the immediate horizon in Ukraine. However, the Ukrainian government is actively refining and updating its broader digital strategy, which encompasses various aspects of electronic governance and trust services. This ongoing process reflects Ukraine's commitment to modernising its digital infrastructure and aligning more closely with European Union (EU) standards.

One significant area of potential development is the harmonisation with EU digital regulations, particularly as Ukraine seeks deeper integration with European standards. This harmonisation could lead to updates in how electronic signatures are regulated, especially concerning cross-border transactions. Such changes would likely focus on the mutual recognition of digital certificates issued by foreign trust service providers, thereby facilitating international business operations and enhancing legal certainty in cross-border agreements. This alignment with EU standards is crucial as it would ensure that Ukrainian electronic signatures are recognised and trusted across EU member states, streamlining processes for businesses and individuals engaged in international activities.

In addition to regulatory updates, the government is also expected to continue improving its digital governance framework through initiatives like the "Diia" platform, which offers citizens digital access to various public services. These efforts are part of a broader strategy to enhance cybersecurity, increase public trust in digital services, and ensure that Ukraine's digital transformation aligns with international best practices. As Ukraine advances its digital agenda, these developments may set the stage for future legislative adjustments, further strengthening the legal framework for electronic signatures and trust services in the country.

Industry-specific standards for electronic signatures in Ukraine

Certain industries in Ukraine have specific requirements for electronic signatures due to the sensitive nature of their operations:

1. Financial services: The financial sector often requires qualified electronic signatures (QES) to meet stringent security and compliance standards. This is especially true for high-value transactions or transactions involving sensitive financial data.
2. Legal sector: Legal contracts and official court documents frequently require a QES to ensure that the parties involved are securely identified and that the document is tamper-proof.
3. Healthcare: Electronic health records and medical contracts may also require a QES to protect patient data and comply with legal obligations.
4. Government contracts: Contracts or communication with government bodies typically necessitates the use of a QES to maintain the highest level of security and legal validity, ensuring that all parties are properly authenticated and the document is legally binding.
5. Real estate: While some transactions can be conducted with electronic signatures, others may still require traditional signatures or notarization.

Adoption of electronic signatures in Ukraine

The adoption of electronic signatures in Ukraine is experiencing significant growth, driven by the country's ongoing digital transformation across both business and public sectors. This shift has been notably accelerated by the COVID-19 pandemic, which necessitated remote work and online transactions, prompting organisations and individuals to increasingly rely on digital solutions. The IT and service industries, in particular, have fully integrated electronic signatures into their operations, leveraging these tools to streamline processes, reduce reliance on physical paperwork, and enhance efficiency.

The Ukrainian government has played a crucial role in promoting digitalisation, recognising the value of electronic signatures in modernising public services. A key initiative is the launch of the "Diia" app, which provides citizens with digital access to a wide range of government services, reflecting the government's commitment to eGovernance. This app has not only made public services more accessible but has also reinforced the importance of secure digital transactions.

Public awareness and trust in electronic signatures have grown alongside these technological advancements, bolstered by targeted campaigns and educational initiatives from both the government and the private sector. These efforts have helped to demystify the technology and address security concerns, making electronic signatures a trusted tool for both businesses and individuals. As Ukraine continues to align with European Union standards and expand its digital infrastructure, the adoption of electronic signatures is expected to become even more widespread, further embedding digital processes into everyday life and solidifying their role in the country's economic and administrative functions.

Leading providers of electronic signature services in Ukraine

Several companies provide electronic signature solutions in Ukraine, catering to the needs of businesses and individuals. Some of the leading providers include:

1. DocuSign: A global leader in electronic signature solutions.
2. Juro: A popular contract automation platform known for its user-friendly interface and robust security features, Juro is a popular choice for businesses of all sizes.
3. Adobe Sign: Part of the Adobe Document Cloud suite.
4. SignNow: Offers a user-friendly platform for electronic signatures. 
5. Zoho Sign: Part of the Zoho suite, providing seamless integration with other Zoho applications.
6. HelloSign: A Dropbox company providing electronic signature solutions.

These providers offer various levels of electronic signature solutions, from simple electronic signatures to qualified electronic signatures that meet the highest legal standards in Ukraine.

FAQ: common questions about electronic signatures in Ukraine

Are electronic signatures legally binding in Ukraine?

Yes, electronic signatures are legally binding in Ukraine, provided they meet the standards set by Ukrainian law, particularly the Law of Ukraine "On Electronic Trust Services."

What types of electronic signatures are recognised in Ukraine?

Ukraine recognises three types of electronic signatures: qualified electronic signatures, advanced electronic signatures, and simple electronic signatures. Qualified electronic signatures are considered equivalent to handwritten signatures when certain conditions are met.

What is a qualified electronic signature?

A qualified electronic signature (QES) is the most secure and legally recognised type of electronic signature in Ukraine. It is created using a qualified signature creation device and is backed by a qualified certificate from an accredited trust service provider.

Can I use an electronic signature for all types of documents in Ukraine?

While electronic signatures are widely accepted, some documents (such as those requiring notarization, certain government documents, and wills) may still require traditional handwritten signatures.

Can I use a simple electronic signature for all contracts in Ukraine?

No, a simple electronic signature may not be sufficient for certain contracts, especially those involving government entities or requiring high security. In such cases, a QES is required.

What happens if an electronic document is altered after being signed?

If an electronic document is tampered with after being signed, the signature may be invalidated. Advanced and qualified electronic signatures can detect such changes, maintaining the integrity of the document.

Are there industry-specific requirements for electronic signatures in Ukraine?

Yes, certain industries, such as finance, legal, and healthcare, may have specific requirements for electronic signatures, often necessitating the use of a QES to ensure security and compliance.

Are foreign electronic signatures recognised in Ukraine?

Foreign electronic signatures may be recognised if they meet the standards set by Ukrainian law or if there are relevant international agreements in place.

How can I choose the right electronic signature provider in Ukraine?

Consider factors such as security features, ease of use, compliance with industry standards, integration capabilities, and customer support when choosing an electronic signature provider.

Who are the leading providers of electronic signature solutions in Ukraine?

Leading providers include Juro, DocuSign, and Adobe Sign, among others. Each offers various features tailored to the needs of different industries.

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Ukraine has made significant strides in recognising and regulating electronic signatures, aligning its legislation with international standards. As the country continues to embrace digital transformation, the use of electronic signatures is likely to become even more widespread, offering convenience and efficiency in various sectors of the economy.

Juro is not a law firm and this article should not be relied on as legal advice.