France Attempts Prosecution of Master for Sanctions Violations

 

Prosecutors in a French court this week argued that the master of a vessel that was charged with sanctions violations shortly after the start of the war in Ukraine should be held responsible. While a court previously released the vessel, the argument is that the ship’s captain was aware of the situation and ownership of the vessel and as such is responsible for the violations.

At issue is the Russian-flagged Ro-Ro carrier Baltic Leader (7,100 dwt). The vessel was built in 2000 and moved through various registries and names with different owners before coming to Russia in 2021. The vessel was managed by PSB Leasing, a subsidiary of the Russian bank Promsvyazbank. The European Union and the U.S. sanctioned the bank for its links to the Russian government. 

The ship made a port call in Rouen, France on February 25, and then departed with reports it was going to St. Petersburg, Russia. Some reports said it was loaded with cars while others say parts for wind farms. Shortly after leaving Rouen, the French Navy intercepted the ship and directed it to Boulougne-sur-Mer where it was detained.

A dispute emerged over the ownership of the vessel with PSB Leasing saying that Transmorflot, not it, was the actual owner of the vessel. They reported a transfer of the vessel days earlier and as such argued the ship was not operating under sanctions. The Douai Court of Appeals in France in December 2022 declared Transmorflot the owner and released the vessel. 

The master of the vessel is being tried in absentia. Prosecutors are seeking a tax fine of €8 million and a further €8 million requested by French customs. The prosecutor argues that the master had knowledge of the ownership and operation of the vessel and acted accordingly.

The defense however highlighted that the master was only an intermediary for the vessel’s owners. They said he had to follow the orders of his employer and that uncertainty on the ownership should “benefit the defendant.” Further, they noted he earned less than €2000, so the focus should be on the Russian companies and not the individual.

Officials from French Customs confirmed that it was difficult to have a clear picture of the true ownership of the vessel. They however believe that PSB Leasing remained in command and as such it was a violation. As such, they asked the court to impose a suspended prison sentence of 10 months for the master but to order the payment of the two fines.

The court is expected to rule on October 10.

 

Top photo Gestumblindi / CC BY-SA 4.0