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Ukraine imposed sanctions on the shipping company FIDES SHIP MANAGEMENT (Odessa, Ukraine). This decision was adopted by the National Security and Defense Council of Ukraine and put into effect by Decree of the President of Ukraine № 556/2021 of October 30, 2021.
In 2021, six ships and three shipping companies, including FIDES SHIP MANAGEMENT, have been hit with sanctions amid the latest US effort to cut off Venezuelan oil exports. US sanctions were applied to 4 tankers: BALIAR, BALITA, DOMANI & FREEDOM. Over the last 2 years, the vessels have changed their name, flag and shipowner several times. FIDES SHIP MANAGEMENT held the position of commercial manager of the above vessels.
According to the Decree of the President of Ukraine № 556/2021 of October 30, 2021, sanctions against FIDES SHIP MANAGEMENT are applied for a period of – three years.
Legal Alert
To protect the national interests, national security and territorial integrity of Ukraine, individuals and legal entities may be subject to special economic and other restrictive measures (sanctions). This legal issue is regulated by the Law of Ukraine “On Sanctions”, No. 1644-VII, dated August 14, 2014.
Decisions on sanctions are made by the National Security and Defense Council of Ukraine (NSDC) and are enacted by the corresponding Decrees of the President of Ukraine.
The types of sanctions that can be applied by the Ukrainian government are listed in Article 4 of the Sanctions Law, including:
- blocking of assets;
- restriction of trade operations;
- prohibition or restriction of entry of foreign non-military vessels and warships into the territorial sea of Ukraine, its internal waters, ports, and aircraft into the airspace of Ukraine, or landing on the territory of Ukraine; and
- additional measures in the field of ecological, sanitary, phytosanitary, and veterinary control.
If the Shipowner, Charterer, or Commercial Manager of the vessel is on the sanctions list, there is a risk of the arrest of the vessel or cargo in Ukrainian ports. It is because of the risks of “sanctions arrests” that the maritime business must take into account whether or not sanctions are applied to any of the parties to the carriage by sea.
The BLACK SEA LAW COMPANY practice includes unique “sanction cases” that were applied to both legal entities and individuals, including arrest of vessels and cargo in Ukrainian ports, other personal and corporate assets, etc. Our Team has leading experts on sanctions in the Ukrainian jurisdiction and has provided comprehensive legal advice on the risks of sanctions in the shipping industry.
For more detailed legal advice on sanctions in Ukraine:
office@blacksealawcompany.com