ITIC circular: Update - legislation relating to the banning of Russian connected vessels to UK ports

Further to our circular of 1st March on the banning of Russian connected vessels to UK Ports, please see the link to the legislation detailing the ban: The Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2022 (legislation.gov.uk) 

The prohibition applies regarding:

“(a) a ship owned, controlled, chartered or operated by a designated person,
(b) a ship owned, controlled, chartered or operated by persons connected with Russia,
(c) a ship flying the flag of Russia,
(d) a ship registered in Russia, or
(e) a specified ship.”

There are a number of helpful provisions including that:

(1) “…a person is to be regarded as “connected with Russia” if the person is—

(a) an individual who is, or an association or combination of individuals who are, ordinarily resident in Russia,
(b) an individual who is, or an association or combination of individuals who are, located in Russia,
(c) a person, other than an individual, which is incorporated or constituted under the law of Russia, or
(d) a person, other than an individual, which is domiciled in Russia.””

(2)  “a ship is—

(a) “owned” by a person if—
1.   the legal title to the ship, or to any share in the ship, is vested in the person, or
2.   the person has a beneficial interest in the ship or in any share in the ship; and

(b)“controlled” by a person who is able to take decisions about its operation, including (but not limited to) decisions about the route the ship may take and the appointment of master or crew.”

The legislation clarifies that “a ship is not “controlled” by its master or crew, unless that master or crew are designated persons…” That means that the simple fact alone of the master or crew being Russian, does not mean the ship is controlled by a Russian person, unless they are designated persons as defined under the Regulations (i.e. on the sanctions list).

(3) The ban also applies to a “specified ship” – where the Secretary of State may specify a ship where they have “reasonable grounds to suspect that the ship is, has been, or is likely to be, involved in a relevant activity, and considers that it is appropriate for that ship to be specified…”. A ship is “involved in a relevant activity” “if the ship is used for any activity whose object or effect is to contravene or circumvent, or to enable or facilitate the contravention or circumvention of, any provision of these Regulations."