SHIPOWNERS are increasingly seeking breakaway clauses in contracts with Chinese businesses that would make it easier for them to walk away from deals if western governments impose sanctions on Beijing, reports London's Financial Times.
Senior lawyers at four maritime law firms, who declined to be named, said vessel owners were regularly asking for bespoke clauses that would offer clearer protection against the impact of western sanctions when negotiating deals with Chinese counterparts such as shipbuilders, lenders and traders chartering freight services.
The impact of Russia's full-scale invasion of Ukraine has shaken shipowners and left groups far more exposed to sanctions, with the war putting pressure on them to keep track of their vessels amid greater scrutiny from regulators, banks and insurers.
'People didn't anticipate the eventual scale of the sanctions against Russia. And how quickly we ultimately got there,' said Patrick Murphy, a shipping lawyer at Clyde & Co.
The situation has prompted companies to consider the likelihood of even more disruptive restrictions being imposed on China, amid fears over US-China tensions and Beijing's military assertiveness around Taiwan.
'China is hugely more systemically important to the trading system than Russia - it would be very difficult were the same sanctions to come in,' said Mr Murphy. 'You can't assume anything. We have to be prepared.'
SeaNews Turkey
Senior lawyers at four maritime law firms, who declined to be named, said vessel owners were regularly asking for bespoke clauses that would offer clearer protection against the impact of western sanctions when negotiating deals with Chinese counterparts such as shipbuilders, lenders and traders chartering freight services.
The impact of Russia's full-scale invasion of Ukraine has shaken shipowners and left groups far more exposed to sanctions, with the war putting pressure on them to keep track of their vessels amid greater scrutiny from regulators, banks and insurers.
'People didn't anticipate the eventual scale of the sanctions against Russia. And how quickly we ultimately got there,' said Patrick Murphy, a shipping lawyer at Clyde & Co.
The situation has prompted companies to consider the likelihood of even more disruptive restrictions being imposed on China, amid fears over US-China tensions and Beijing's military assertiveness around Taiwan.
'China is hugely more systemically important to the trading system than Russia - it would be very difficult were the same sanctions to come in,' said Mr Murphy. 'You can't assume anything. We have to be prepared.'
SeaNews Turkey