On 23 May, 2025, the conference “Current Issues of Maritime Law: Today`s Realities”, organized by the Maritime Arbitration Commission at the Ukrainian Chamber of Commerce and Industry (the UMAC), took place in Odesa. The discussion was devoted to the key topics for Ukrainian arbitration – unprecedented challenges faced by the maritime industry, changes in international arbitration and court practice, interaction with courts and lawyers, and, of course, benchmark cases and developments.
Mykola Selivon, the President of the ICAC and the UMAC, opened the conference by offering the participants an overview of the current state and prospects of Ukrainian arbitration, emphasizing the role of the UMAC as an effective mechanism for alternative dispute resolution in the maritime sector and the importance of ensuring the continuous operation of this institution in times of war.
Mr. Selivon reminded that arbitration institutions were the same age as independent Ukraine and had been operating for over 30 years. Even in the face of a full-scale invasion, neither the UMAC nor the ICAC stopped working, adapting procedures and processes to the new realities. Oral hearings are now successfully held online, which allows for continuous consideration of cases, and last year the UMAC expanded its Recommendatory list of arbitrators with many maritime practitioners . Their work as arbitrators at the UMAC has already been positively evaluated by users of arbitration services.
Mykola Melnykov, the Vice President of the UMAC, Partner at Interlegal, focused his speech on the current problems and challenges of the maritime industry and the transformation of international maritime arbitration under the influence of the war. The expert is convinced that in the face of new risks – security, logistical and legal ones – arbitration remains a critically important mechanism for resolving conflicts in the maritime sector. Mr. Melnikov drew special attention to the advantages of the Maritime Arbitration Commission compared to other arbitration institutions and the prospects for its development as a regional leader in maritime dispute resolution.
According to the presenter, the UMAC is already demonstrating a high level of productivity – about 80% of cases are considered in less than six months. This institution has a huge potential, especially in segments where traditional London arbitration is less accessible or overly complicated. According to Mr. Melnikov, the future of Ukrainian arbitration lies in strengthening local institutions capable of resolving disputes promptly and professionally in a close geographical and legal context.
Yulia Shchavynska, a Judge of the Commercial Court of Odesa Region, analyzed the role of the judicial system in maritime disputes on the basis of current court practice. She emphasized that despite the development of arbitration, certain categories of maritime cases – in particular, the arrest of ships – remain the exclusive competence of state courts. Statistics show that since the beginning of the war, the number of such cases has not decreased, but even increased. However, the parties often use the arrest of a vessel as a tool of pressure to reach pre-trial settlement, and most of these cases do not reach the merits..
The judge explained in detail the requirements for requests for the arrest of a vessel, drew attention to certain controversial aspects, such as repeated arrest, arrest of a related vessel, application of the MSC rules to foreign-flagged vessels, and supported her theses with examples from her own practice and the practice of her colleagues.
Summarizing, Ms. Shchavynska emphasized the importance of accurate execution of procedural documents and good faith use of procedural rights by the parties.
Borys Kormych, Professor, Doctor of Law, Head of the Maritime and Customs Law Department, National University Odesa Law Academy, UMAC arbitrator, in his presentation outlined the main challenges in training maritime lawyers in the current conditions. The professor raised the issue of the importance of developing specialized maritime education, in particular in Odesa region, and the need to create in-depth, comprehensive curriculums that take into account international standards, in particular the English maritime law. He also mentioned the relevance of the security component in the training of maritime lawyers and expressed reservations about reforms in legal education that could make it difficult for students to adapt to the dynamic labor market.
The second part of the conference featured a practical panel discussion on Practical aspects of maritime dispute resolution. The speakers shared real cases from their own practice, including ship arrests, maritime claims and peculiarities of protecting clients’ interests in complex and protracted proceedings, and analyzed how the judicial system responded to those situations. Open discussion made it possible not only to outline the most painful practical problems of the industry, but also to suggest ways to improve the practice of maritime dispute resolution in Ukraine.
Konstantin Moryakov, a maritime lawyer, attorney at law of ANK Law Firm, raised a sensitive topic for the maritime community – abuse of the right to arrest ships. According to the lawyer, this legal instrument, which is supposed to ensure effective defense of claims, is increasingly being used as a means of pressure on shipowners. As an example, Mr. Moryakov cited the case of a vessel that was arrested four times within nine months in eight different proceedings. In this process, lawyers faced numerous procedural abuses, such as submission of false documents to the court, manipulation of the automated distribution of cases, duplication of claims, and ignoring previous court decisions. But, as the expert sadly noted, even obvious evidence of such actions does not always provoke an adequate response from the judicial system. This creates risks both for business and for the reputation of Ukraine as a maritime power.
Artem Volkov, Head of Maritime Law Practice at ANK Law Office, highlighted the importance of verification of legal capacity of companies, especially in cases involving non-residents (in the field of shipping, these are mainly companies from offshore or low-tax jurisdictions).
Mr. Volkov emphasized that the courts should carefully check not only the authorities of attorneys, but also the legal authorities of the parties, including the current legal status of the company and the authenticity of the documents provided by it. Otherwise, there is a risk of manipulation, for example, when improper representatives act for a liquidated company. For example, in one of the company’s cases, ignoring such a check led to serious problems, including the illegal (and repeated) change of ownership of a vessel that was under arrest.
Taras Dragan, Attorney at Law, Senior lawyer at Interlegal, spoke about a number of complex cases of vessel arrest. He noted that excessive formalism, inconsistency of law enforcement practice and legislative gaps are often the reasons for refusals to arrest. Interlegal’s expert cited several cases that demonstrate how the lack of signed contracts, lack of proof of the company’s or vessel’s location, as well as various arguments in court complicate the seizure. Mr. Dragan paid special attention to the need to form a common practice and understanding among lawyers, as legal uncertainty is detrimental to the effective protection of clients’ interests.
Oleg Podtserkovnyi, Doctor of Law, Professor, Head of the Chair of Economic Law and Procedure of the National University “Odessa Law Academy”; Corresponding Member of the Ukrainian National Academy of Law Sciences, arbitrator of the (ICAC), continued the discussion with an overview of trends and practice of consideration of cases at the ICAC. According to the statistics offered by the expert, in 2021, the UMAC considered 21 cases in which the claimants were exclusively domestic business entities. 38% of the respondents were residents of Ukraine, the rest were foreign companies from different countries. According to the professor, such an indicator is encouraging for the development of international arbitration in Ukraine, as it demonstrates the interest of the parties in using this platform even in disputes with a foreign element. Mr. Podtserkovnyi noted that this is facilitated by the advantages of the UMAC, including the possibility of arresting the vessel before the case hearing, lower costs compared to other international institutions and the absence of appealed decisions.
The attractiveness of Ukrainian arbitration is illustrated by another example he gave: the standard booking notes of the Ukrainian Danube Shipping Company already contain an arbitration clause in favor of the UMAC. This indicates the gradual institutionalization of arbitration in standard contractual practice. At the same time, it is important that other companies join this initiative, contributing to the formation of a sustainable arbitration practice, the expert believes.
Yurii Serhieiev, managing partner of the Law Firm “Sergeyevs” Law Office’’, UMAC arbitrator, delivered a report on disputes between shipowners and crew members. According to Mr. Sergeyev, despite the fact that about 90% of Ukrainian seafarers are now abroad, the number of labor disputes is not decreasing. Some of the cases are heard by foreign courts – in Bulgaria, Romania, Germany, and some are still being heard in Ukraine.
Most often, claims in this category relate to non-payment of wages, problems with early termination of contracts, repatriation and compensation in case of disability or death, treatment of seafarers abroad, and missing persons. Among other things, the arbitrator voiced a very unfortunate trend: the growing number of “non-standard” cases in the seafarers’ community, including suicides and deaths under questionable circumstances that require forensic medical examination.
The expert emphasized that in such cases, the correct determination of the applicable law is important: The Supreme Court insists on the application of foreign law in accordance with the terms of the employment contract, while some claimants still refer to the Ukrainian Labor Code. The situation is complicated by the lack of a clear definition of the responsible party in the contracts – it can be either the employer, manager or shipowner. In addition, it is almost impossible to prove the liability of insurance clubs in Ukrainian courts, which mostly remain outside the process.
According to the speaker, the effectiveness of such cases depends on the lawyers’ honest and professional approach, as well as careful formulation of the legal position taking into account all the nuances of contractual obligations and international practice.
At the end of the event, Serhii Nedilko, Attorney at Law, Counsel, Head of Odesa Office at Ilyashev & Partners Law Firm, shared his practical experience of using letters of guarantee of mutual insurance clubs (P&I Clubs) in Ukraine.
According to the expert, club guarantees are a recognized way of securing maritime claims in the world and help to effectively avoid or cancel the arrest of a vessel. In Ukraine, the situation is different: the new version of the Law “On Insurance” introduced strict conditions and restrictions for non-resident insurers, which makes it difficult to recognize P&I clubs as such. As a result, club guarantees are sometimes not perceived as adequate security.
Practice shows that courts and some state ports are ready to accept such guarantees. There are examples of positive decisions where a club guarantee was the basis for canceling the arrest of a vessel. At the same time, public authorities, in particular the prosecutor’s office and the environmental inspection, often refuse to accept these instruments due to a lack of understanding of the specifics of P&I clubs or negative previous experience.
Mr. Nedelko gave examples of successful application of club guarantees – and unfortunate cases when a ship was left in port for months due to their non-acceptance. He expressed a good point: for the effective use of this instrument in Ukraine, not only changes in legislation are needed, but also raising awareness of government agencies.
According to the organizers, this year’s UMAC conference was very special. For the first time, the platform brought together more than 200 representatives of the professional community – judges, practicing arbitrators, lawyers, attorneys, scholars, and students – live and online.
The involvement of judges in the discussion was very important. It demonstrates the establishment of closer cooperation between arbitration and the judicial system, as well as the mutual desire to deepen the understanding of processes in the field of maritime law.
The event was held in a hybrid format – at the site of the event in Odesa and online. This format ensured the participation of experts from different cities and countries.
The official partners of the conference were the Bar Association of Ukraine, the Maritime Law Committee of the Odesa Regional Bar Council and the Transport Law Committee. Odesa Branch of the Ukrainian Bar Association, Odesa Branch of the UBA Students League and the ELSA (European Law Students Association) also provided organizational support.
You can view photos from the event here.
