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The team of Odesa Office of Ilyashev & Partners Law Firm acted as legal advisor for shipowners, mutual liability insurance clubs (P&I Clubs) and war risk insurers of Primus (ex Polarstar), Anna Theresa (ex Filia Glory), Puma and Comet vessels. The specified ships entered Great Odesa ports to be loaded with cast iron, ore, metal and other non-grain cargo, but did not manage to depart due to Russia’s full-scale invasion and were not able to use the “grain corridor” due to the nature of the cargo on board.
Clients’ issues, on which the specialists of Ilyashev & Partners’ Odesa Office provided legal advice, mainly related to the legality and validity of shipowners’ notices of abandonment (recognition of ships as having suffered a total constructive loss) in accordance with the UK Marine Insurance Act 1906, as well as the mechanisms for forced discharging of ships without the consent of cargo interests (charterers/ cargo shippers/ cargo owners/ consignees) provided for by Ukrainian law. In particular, specialists developed mechanisms for application of interim measures in support of arbitration at the London Maritime Arbitrators Association under the applicable English law.
Standpoint of the shipowners blocked in the ports of Great Odesa was that the ships suffered a constructive total loss, since the opportunity to freely possess and use the ships was completely lost due to war risks. Moreover, it is unlikely that it will be possible to restore such possession, or the cost of restoration will exceed the value of the vessels. Also, the subject of disputes was the impossibility of vessels’ departure through the “grain corridor” due to the refusal of cargo interests to approve discharging.
However, the insurers insisted that the shipowners did not actually lose the opportunity to freely possess and use the ships, because if the cargo was replaced with agricultural products, they would be able to freely sail through the “grain corridor”, but did not make due efforts to discharge. In the end, the blocked vessels Primus (ex Polarstar), Anna Theresa (ex Filia Glory) and Puma were released and safely sailed through the ports of Great Odesa.
The projects were handled by the team of the Odesa Office of Ilyashev & Partners Law Firm under the supervision of the Counsel, Attorney at Law Sergey Nedelko.
After the Russian Federation refused grain deal, Ukraine was looking for new opportunities for vessels blocked since the beginning of Russia’s full-scale invasion on 24 February 2022 to depart from the Black Sea ports of our state. As of the beginning of August 2023, 7 of them still have not left the ports of Great Odesa (Odesa, Pivdennyi and Chornomorsk).
On 10 August 2023, it became known that new temporary routes for civil vessels to/from the Ukraine Black Sea seaports were announced by the Order of the Military Naval Forces of the Armed Forces of Ukraine No. 6 dated 8 August 2023.
As of 15 September 2023, 5 vessels used the temporary routes, including the container ship Joseph Schulte, bulk carriers Primus and Puma, which left Odesa Port, as well as bulk carriers Anna Theresa and Ocean Courtesy, which managed to leave the Pivdennyi Port.