Merchant Shipping Code of Ukraine (Edition of July 04, 2013)

SECTION IX. Marine Casualties and Emergencies.

Chapter 4. Indemnity for Pollution Losses.

Clause 304. Liability of Shipowner for Pollution.

The Shipowner shall be liable for the pollution losses resulting from a leakage or a discharge of oil or other substances harmful for human health or sea living resources (hereinafter the pollutants) from the vessel, excluding the cases mentioned in Clause 306 of this Code.

The losses from pollution shall mean the harm incurred by pollutants to marine environment, shore or any other facilities and objects (vessels, fishing appliances and devices, etc.) outside of the vessel. Said losses shall also include a cost of reasonable measures taken by any party following the incident which may have caused or has caused leakage or discharge of pollutants, to prevent or reduce damage from pollution as well as the losses incurred by said measures.

Clause 305. Exemption from Liability.

The Shipowner shall not be liable for pollution losses provided he proves that said losses were caused by:

  1. natural calamities (Acts of God);
  2. military actions, unfriendly actions or civil commotions (mutinies);
  3. intrusion of third parties acting with an intention of inflicting said losses;
  4. faulty lights or other aids to navigation that have been made unserviceable as a result of negligence or other wrongful actions of the authorities responsible for keeping said aids in order;
  5. emergency discharge of waste, bilge and fecal waters or garbage because the port has not received said pollutants in due time following the duly submitted vessel's demand.

Clause 306. Pollution Caused by Deliberate Intention or Negligence of Victim.

If the Shipowner proves that the marine pollution losses were incurred, completely or partially, by a deliberate intention or carelessness of the Victim, the extent of indemnity shall, depending on the extent of Victim's fault, be reduced or the indemnity for said losses shall be waived.

Clause 307. Pollution by Several Vessels.

In case the pollution losses are caused by leakage or discharge of pollutants from several vessels, the owners of said vessels shall bear a joint and several liability for the entire losses if it is impossible to determine liability of each owner separately.

Clause 308. Limitation of Liability.

The liability of the owner of the vessel having a capacity not more than 5000 units for pollution losses resulting fron4 leakage or discharge of pollutants from his vessel shall be limited with respect to one or several incidents caused by one and the same reason, by a total sum of 3 million (International Monetary Fund) units and for the vessel whose capacity exceeds the abovementioned figure - another 420 units shall be added for each successive unit of capacity.

In this Clause, a capacity of the vessel shall mean her net capacity including the engine-room volume. If it is impossible to determine the vessel's capacity by customary (commonly used) measurement methods, the capacity of said vessel shall be considered equal to 40% of the weight of oil and other substances that the vessel may carry, expressed in tons.

Clause 309. Security of Shipowner's Liability.

The owner of the vessel carrying more than 2000 tons of oil in bulk shall insure or secure in other way (by obtaining a bank or other guaranty) his liability for losses caused by pollution.

The claim for indemnifying the losses caused by oil pollution may be brought directly against the Insurer or other party who has provided said security to the Shipowner.

The party who has received said claim shall have the right, in accordance with Clause 308 of this Code, to limit his liability, if the Shipowner's liability cannot, in accordance with Clause 350 of this code, be limited. the respondent in said action shall have the right to put objections against the victim's claims which might have been made by the Shipowner himself, excluding the references to Shipowner's insolvency or liquidation of his enterprise. The respondent shall be free from liability in that case as well if. he proves that the damage from oil pollution was caused by a deliberate fault of the Shipowner himself. On request of the respondent, the Shipowner shall have to be brought to participate in the action as a co-respondent.

Clause 310. Certification of Securing liability.

The vessel carrying more than 2000 tons of oil in bulk shall be obliged to have an appropriate valid certificate to the effect that the Shi p- owner's liability in respect to oil pollution damage is secured in accordance with Clause 309 of this Code. The conditions and procedure of the issuance, checking and recognition of said certificate shall be established by the central body of executive power, ensuring the development and implementation of state policy in the field of maritime and river transport in accordance with Clause 3 of this Code.

Clause 311. Exemption from Liability Limitation.

Liability for pollution damage and losses provided for by this Chapter shall be subject to rules of Clauses 350, 354, 355, 356 and 357 of this Code.

Clause 312. Definition of Oil.

Within Clauses 309 and 310 of this Code "oil" shall mean any oil including crude oil, residual fuel oil, heavy fuel oil, diesel oil and lubricants as well as whale and fish oil.