During the period of Soviet rule there was no need for private law remedies to regulate economic relations, particular in the area of bankruptcy. After the Soviet Union's collapse, former republics and newly independent states started developing market-oriented laws to support democratization process. Due to Ukraine's lack of any bankruptcy legislation during the last century, 1992 marked the starting point of bankruptcy law formation in the country. The formation of bankruptcy laws in Ukraine and other countries in the region may be traced to two stages of development: "first wave" laws passed in 1990 through 1993, and "second wave" laws that were adopted after 1996, mostly with the purpose of replacing the preceding bankruptcy laws. If the main goal of first wave bankruptcy laws was to change the Soviet system of regulation based on planned economy principles, the second wave bankruptcy laws absorbed Western doctrines addressing the importance of debtors' solvency restoration. Moreover, a third wave of bankruptcy law developments in this region's countries has already begun. Ukraine is one of the first countries of the former Soviet Union that has started the process of introducing cross-border insolvency rules into the body of Bankruptcy Law through developing relevant amendments.
"Ukrainian Bankruptcy Law in the Context of Regional and International Developments,"
Annual Survey of International & Comparative Law:
1, Article 3.
Available at: http://digitalcommons.law.ggu.edu/annlsurvey/vol13/iss1/3