Сharging payment for ice-breaking services

Ice-breaking services are treated as special services rendered at the sea port and are governed by the Resolution of the Cabinet of Ministers of Ukraine No. 405 dd. 03.06.2013 “On approval of the List of special services rendered at the sea port by natural monopoly entities, governed at the state level”. The cost of ice-breaking services shall be calculated on the grounds of vessel’s capacity in cubic meters, as per the Order of the Ministry of Infrastructure No. 1059 dd. 26.12.2013 “On approval of the Tariffs for ice-breaking services”. Payment shall be accrued for the period of the announced ice campaign for the following services:

- services regarding securing safe entry, leave, maneuvering, mooring, shifting and movement of vessels within the sea port water area for the period of the announced ice campaign;

- ice-breaker assistance for vessels (convoys of vessels).

The agricultural product trader, acting as the vessel charterer, applied to Interlegal due to charging payment for services provided in respect of safe vessel leave during the call to one of the Ukrainian sea ports in winter 2017.

During the work upon the case, Interlegal experts analyzed the principal aspects of charging payment  for rendering special services. According to the law, an official announcement of ice campaign at the sea port and the fact of rendering such services shall be taken into consideration.

On the grounds of analysis, Interlegal lawyer, Ekaterina Gadetskaya under general supervision of the partner, Natalya Myroshnychenko, provided a legal opinion to the Client which stated conclusions on lawfulness of charging payment and the current risks for the vessel due to non-payment for such services, jointly with recommendations for the Client in respect of further actions.