A Swedish court has upheld the seizure of a cargo vessel in the Baltic Sea and ruled that the ship may be handed over to Ukraine, where it is suspected of illegally transporting grain from Russian-occupied territory, reported Reuters.

Police and the coast guard detained the vessel, the 999 dwt Caffa, off southern Sweden in March, alleging it was sailing under a false flag and violated maritime safety laws due to a lack of seaworthiness.

A lawyer for the owner, Caffa Shipping Limited, challenged the seizure, but the court confirmed that the action was legally founded and stated that the vessel could be surrendered to Ukraine as part of an investigation into suspected war crimes.

Public prosecutor Hakan Larsson noted that the ruling must become legally binding before any transfer can take place. The owners have three weeks to appeal.

The district court indicated that the alleged conduct could constitute a war crime under Swedish law, thereby clearing the way for the transfer of the vessel and related evidence to Ukrainian authorities.

Most of the Caffa's 11 crew members were Russian, police said at the time of the seizure. The vessel is a 96-metre general cargo ship, according to MarineTraffic.