THE Russian-leaning Ukrainian province of Crimea is expropriating local ports and creating a marine zone along the coastline following the provincial referendum to join the Russian Federation.
The move will see the replacement of the hyrvnia, Ukrainian currency, to Russian ruble as local currency and the expropriation of key commercial and fishing ports.
The expropriated ports will transfer ownership from one state to another as the facilities are already nationalised. These include: Kerch ferry terminal, Kerch commercial sea port, Kerch sea fishing port, Feodosia commercial sea port, Yalta commercial sea port, Sevastopol commercial sea port, Sevastopol sea fishing port and Evpatoriya commercial sea port.
These ports account for 10 to 15 per cent of Ukraine's overall cargo traffic in throughput: Sevastopol, Kerch, Feodosiya, Yevpatoriya and Yalta. Crimean ports account for as much as 39 per cent of Russian transit cargoes with Kerch taking the majority.
It is unclear how the takeover will affect current port users but insurance implications are evident given the delicate political situation and illegitimate government of the Crimean takeover, according to a report from Russian surveyors Eurogal.
The marine zone will be managed by the Crimean body, the Republican Committee on Transport and Communications.
Ukranian seaports administration head Yurii Vaskov has highlighted fears of new border control points slowing down transshipment times and the changing ownership of Crimean ports.
"We insist that the situation should develop legally. That is, [a situation in which] property is not transferred but simply taken and its status changed should not happen," he said, according to Lloyd's List.
Russia and Ukraine's plans to jointly develop commercial shipbuilding along the Crimean coastline is likely to be terminated despite signing an agreement earlier this year for Russia's investment of US$4 billion in Ukrainian shipbuilding.
WORLD SHIPPING
20 March 2014 - 20:22
Crimea expropriates provincial ports, insurers raise legal concerns
THE Russian-leaning Ukrainian province of Crimea is expropriating local ports and creating a marine zone along the coastline following the provincial referendum to join the Russian Federation.
WORLD SHIPPING
20 March 2014 - 20:22
Crimea expropriates provincial ports, insurers raise legal concerns
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