nitsevych@interlegal.com.ua
www.interlegal.com.ua
2/4 observatorny lane, suite 57
Odessa 65014, Ukraine
Tel: +38 (048) 715-58-55
Fax: +38 (0482) 49-69-25

Overview

1. Please give an overview of ship arrest practice in your country.

Ukraine is a shipping country with impressive law traditions, but as a sovereign and independent state, it exists only from the beginning of the nineties of the last century. Thus, new culture of jural state is at the initial stage of development. Ukraine is not a signatory to the international conventions which regulate relations connected with ship arrest. Thus, there is no special procedure as to arresting a vessel meaning that it is arrested as any other property. Of course, Merchant Shipping Code of Ukraine, adopted in 1995, provides for ship arrest procedure, but this procedure could be applied to vessels flying the Ukrainian Flag only. A vessel flying the flag of the other country can be arrested in Ukraine under conditions provided by the Commercial Procedure, the Civil Procedure Codes and the Private International Law Act of Ukraine. The practice of ship arrest is rather wide, especially in the ports of Big Odessa (Odessa, Ilyichevsk, Yuzhny).

Applicable Laws

2. Which International Convention applies to arrest of ships in your country?

No international conventions apply to arrest of ships in Ukraine.

3. Is there any other way to arrest a ship in your jurisdiction?

There are some other ways to arrest a ship in a Ukrainian port. As a rule vessels are arrested in Ukraine by means of:
a) administrative arrest by the harbour master;
b) preliminary arrest in security of a maritime claim pursuant to the order of Commercial court;
c) arrest in accordance with Court or arbitration award;
d) arrest of a ship under a criminal matter.

Commercial courts and courts of general jurisdiction are the state courts which exercise jurisdiction over maritime disputes. The Maritime Arbitration Commission at the Chamber of Commerce and Industry of Ukraine is a domestic arbitral institution with a panel of arbitrators specializing in maritime arbitration.

4. Are these alternatives e.g. saisse conservatoire or freezing order?

These measures are similar to saisse conservatoire or freezing order.

Claims subject to ship arrest

5. For which types of claims can you arrest a ship?

A vessel can be arrested regardless whether claims are maritime or not, in principle.

Nevertheless, according to the maritime law of Ukraine the vessel may be arrested only upon at least one of the following conditions:
• a claim referred to the category of privileged claims, particularly:
* claims arising out of labour relations, claims for reimbursing damage inflicted by injury, other  impairment of health or death;
* claims arising out of nuclear damage and maritime environment pollution as well as elimination of said pollution consequences;
* claims regarding port and channel dues;
* claims regarding salvage and payment of general average contribution;
* claims for reimbursement of losses resulting from collision of vessels or from other sea casualty, or from damage to port facilities and other property located in the port as well as to navigational aids;
* claims for reimbursement of losses related to cargo or baggage;
• a claim based upon the vessel’s registered mortgage;
• a claim referring to the rights of vessel ownership or possession;
• a claim not indicated hereinabove and referring to the person that is the vessel owner by the moment of origination of the said claim and is responsible for this claim by the moment of starting a procedure connected with vessel’s arrest;
• charterer of the vessel on bareboat charter is liable for the said claim and is the vessel’s bareboat charterer or her owner by the moment of starting a procedure connected with vessel’s arrest.

These rules shall not concern the vessels flying the State Flag other than Ukrainian. Such vessels are treated as a res in general legal sense. 

6. Can you arrest a ship irrespectively of her flag?

It is possible to arrest a ship irrespectively of her flag in Ukraine, in principle.

7. Can you arrest a ship irrespectively of the debtor?

There is no proceeding in rem in Ukraine, so it is possible to arrest a ship owned by the debtor only .

8. What is the position as regards sister ships and ships in associated ownership?

Associated vessels can be arrested if by the moment of initiating the arrest procedure they were property of a person liable for the maritime claim and who was the proprietor/owner of the vessel to which the said claim has arisen.

9. What is the position as regards Bareboat and Time-Chartered vessels?

Associated vessels can be arrested if by the moment of initiating the arrest procedure they were property of a person liable for the maritime claim and who was the charterer of her on bareboat, time or voyage charter basis.