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Hellenic Chamber of Shipping MARITIME LAW REGULATIONS IN UKRAINE EVGENIY SUKACHEV Board Member Ukrainian Maritime Bar Association 24/10/2019 SHIPPING CAPITAL OF UKRAINE ODESSA IS THE THIRD-LARGEST CITY IN UKRAINE SHIPPING CAPITAL OF UKRAINE 8 INTERNATIONAL TRANSPORT CORRIDORS TOTAL CAPACITY - 313, 3 MILLION TONS CARGOES 2/28 KEY FACTS ABOUT ODESSA REGION ODESSA REGION - 2ND LARGEST PORT POTENTIAL AMONG THE BLACK AND AZOV SEAS 7 FROM 13 TRADE PORTS - IN ODESSA REGION 11 RIVER PORTS TO HANDLE UP TO 100 MT OF CARGO ANNUALLY IN 2018 UKRAINE REGISTERED THE HIGHEST GROWTH IN THE CONTAINER TURNOVER VOLUMES AMONG THE BLACK AND AZOV SEAS 3/28 TOTAL CAPACITY - 313, 3 MT CARGOES Sea Port of Chornomorsk 17% Sea Trade Port Yuzhny 37.8% Nikolaev sea port 23.2% Port of Odessa 22% 4/28 CARGO STATISTICS & TRENDS IN 2019 Transit 6.9% EXPORT: 55.464 MT Import IMPORT: 10.961 MT 15.4% TRANSIT: 4.941 MT Export 77.7% 5/28 CARGO STATISTICS & TRENDS IN 2019 COAL OIL OIL: 3.167 MT 4.3% 6.6% CHEMICAL PETROLEUM: 538.78 THOUSAND TONS 3% CHEMICAL CARGO: 1.422 MT GRAIN LOADS: 24.5 MT ORE CARGO: 16.491 MT ORE COAL: 2.076 MT 34.2% GRAIN 50.8% 6/28 PORTS OF UKRAINE SEA - 13 RIVER - 11 7/28 OPERATORS IN UKRAINE PORTS 8/28 STATE AND PRIVATE STEVEDORES 103 PRIVATE PORT OPERATORS 13 STATE PORT OPERATORS 9/28 UKRAINIAN INLAND WATERWAYS 3 NAVIGABLE RIVERS, TWO OF WHICH ARE IN TOP-5 LARGEST RIVERS OF EUROPE 16 RIVER PORTS AND TERMINALS 60 MT OF CAPACITY PER YEAR THE LAW “ON INLAND WATERWAYS OF UKRAINE” MUST BE ADOPTED NO LATER THAN NOVEMBER 1 OF THIS YEAR 10/28 MARITIME AUTHORITY MINISTRY OF INFRASTRUCTURE OF UKRAINE UKRAINIAN SEA PORTS AUTHORITY (USPA) STATE SERVICE FOR MARITIME AND RIVER TRANSPORT 11/28 PSC THE MARITIME ADMINISTRATION IS AN EXECUTIVE BODY WHOSE ACTIVITIES ARE DIRECTED AND COORDINATED BY THE GOVERNMENT THROUGH THE MINISTER OF INFRASTRUCTURE. THE DEPARTMENT IMPLEMENTS STATE POLICY IN THE FIELDS OF SEA AND RIVER TRANSPORT, MERCHANT SHIPPING, SHIPPING ON INLAND WATERWAYS 12/28 ECOLOGICAL CONTROL ENVIRONMENTAL PROTECTION (UKRAINIAN LEGISLATION) WHICH AUTHORITY IS RESPONSIBLE FOR THE ENVIRONMENTAL MONITORING OF SHIPS? INSPECTION'S ACTIONS 13/28 MARITIME REGULATION ON JULY 17, 2019, THE GOVERNMENT OF UKRAINE HAS ADOPTED PROCEDURE FOR JOINT ACTIVITIES BETWEEN THE UKRAINIAN SEA PORTS AUTHORITY AND THE STATE ECOLOGICAL INSPECTION OF UKRAINE ON AUGUST 21, 2019, THE GOVERNMENT OF UKRAINE HAS ADOPTED A RESOLUTION “ON APPROVAL OF THE PROCEDURE OF INSPECTION OF SHIPS, SAMPLING AND WATER ANALYSIS” 14/28 ECOLOGICAL CONTROL TAKING OF SAMPLES SHOULD BE CONDUCTED BY THE ECOLOGICAL INSPECTORATE IN THE PRESENCE OF THE REPRESENTATIVE OF THE MARITIME ADMINISTRATION, THE MASTER OF THE VESSEL AND THE MARITIME AGENT (UPON HIS CONSENT). THEREFORE ECOLOGICAL INSPECTORS CAN NO LONGER ATTEND UNACCOMPANIED. THE ONBOARD SAMPLING LOCATION SHOULD BE DETERMINED BY THE REPRESENTATIVE OF THE MARITIME ADMINISTRATION IN AGREEMENT WITH THE ECOLOGICAL INSPECTOR AND THE MASTER. 15/28 DETENTION STATISTICS 2019 Bilhorod-Dnistrovsky Seaport 6.3% Sea Trade Port Yuzhny Sea Port of Chornomorsk 37.5% 28.1% Port of Kherson Nikolaev sea port 3.1% Port of Odessa 9.4% 15.6% 16/28 SANCTION RISKS SANCTIONS FUNCTION ON THE TERRITORY OF UKRAINE UNDER THE REGULATION OF THE UKRAINIAN LAW “ON SANCTIONS”, THAT WAS ENACTED IN 2014 FULL LIST OF THE UKRAINIAN SANCTIONS IS PRESENTED ON THE OFFICIAL WEBSITE OF THE NATIONAL SECURITY AND DEFENSE COUNCIL OF UKRAINE BIMCO CLAUSE IS A “MUST-HAVE” FOR ANY CHARTER PARTY 17/28 HOW DOES SANCTION GET INTO FORCE? NATIONAL SECURITY AND DEFENSE COUNCIL OF UKRAINE PRESIDENT OF UKRAINE VERKHOVNA RADA OF UKRAINE SANCTIONS ARE ACTIVE 18/28 SANCTION RISKS IN AUGUST, 2018 ONE TANKER ENTERED UKRAINIAN PORT DECREE TO PROHIBIT THE VESSEL TO LEAVE PORT FOR 3 DAYS THE VESSEL WAS INCLUDED IN THE UKRAINIAN SANCTIONS LIST 19/28 SHIP ARREST UKRAINE RATIFIED THE INTERNATIONAL CONVENTION FOR THE UNIFICATION OF CERTAIN RULES RELATING TO THE ARREST OF SEA-GOING SHIPS OF 1952 INTERNATIONAL CONVENTION ON THE ARREST OF SHIPS OF 1999 - NOT RATIFIED ARTICLE 42 OF THE MERCHANT SHIPPING CODE OF UKRAINE STIPULATES MEANING OF THE MARITIME CLAIM 20/28 ARREST PROCEDURE THE GENERAL PRACTICE USED FOR SHIP ARRESTS HAS BECOME MORE STABLE. CHANGES TO THE PROCEDURAL LEGISLATION HAVE SPED UP THE SHIP ARREST PROCEDURE AT THE TIME OF APPLYING FOR REGISTRATION, THE VESSEL MAY BE OUTSIDE UKRAINIAN TERRITORY APPLICATION FOR ARREST IN RESPECT OF A MARITIME CLAIM WILL BE ADJUDGED IN 2 DAYS ARREST OF A SISTER SHIP IS POSSIBLE IN UKRAINE 21/28 SHIP ARREST APPLICATION THE APPLICATION FOR ARREST: (I) DESCRIPTION OF A PROVEN MARITIME CLAIM; (II) INFORMATION THAT THE CLAIM COMMENSURATE WITH THE VALUE OF THE VESSEL THAT WILL BE ARRESTED; (III) GROUNDS OF THE VESSEL ARREST NECESSITY; (IV) EVIDENCE THAT THE VESSEL IS BERTHED OR REGISTERED IN UKRAINE; (V) EVIDENCE THAT THE PARTY RESPONSIBLE FOR THE MARITIME CLAIM OWNS OR MANAGES THE VESSEL. 22/28 RELEASE A SHIP FROM ARREST 1.COURT, WHICH ARRESTED A SHIP MAY LIFT THE ARREST 1.COURT OF APPEALS CAN CANCEL AN ORDER OF ARREST THAT WAS ISSUED BY A COURT OF THE FIRST INSTANCE 23/28 TYPE OF SECURITY BANK GUARANTEE LETTER OF INDEMNITY 24/28 CASE STUDY 1.INSTRUCTIONS AND DOCUMENTS FROM THE CLIENT 2.TRANSLATION OF DOCUMENTS AND APPLICATION 3.WITHIN 14 HOURS AFTER THE APPLICATION - COURT'S DECISION 4.IN 4 HOURS - THE DECISION HAVE BEEN FILED TO THE PORT 5.THE VESSEL WAS ARRESTED ON THURSDAY AT 11 AM 6.THE CLIENT RECEIVED THE AMOUNT OF DEBT ON TUESDAY AT 2 PM 7.ON TUESDAY AT 8 AM - THE SHIP LEFT THE PORT THE VESSEL WAS NOT FILED AT THE PORT OF LOADING 25/28 CASE STUDY WRONG ON THURSDAY AT 11 PM - COURT DECISION FROM A CLIENT ON FRIDAY AT 10 AM - CASE MATERIALS PREPARED AN APPLICATION ON MONDAY AT 9:10 AM - APPLICATION WAS BROUGHT COURT DECISION ON TUESDAY AT 11 AM - THE ARREST WAS CANCELED AT 4 PM - THE SHIP LEFT THE PORT CHARTER DEBT 26/28 WHAT IS IMO 2020? LOW SULPHUR FUEL OIL (0.5% M/M SULPHUR CONTENT) HIGH SULPHUR FUEL OIL (3.5% M/M SULPHUR CONTENT) LIQUEFIED NATURAL GAS (LNG) 0,5 % 0, 3 % LNG 27/28 THANK YOU FOR YOUR ATTENTION EVGENIY SUKACHEV Board Member Ukrainian Maritime Bar Association [email protected] .
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