French Court Acquits Master of Russian-Owned Ship of Violating Sanctions

 

A French court on Thursday, October 10, acquitted the master of a Russian-owned Ro-Ro cargo carrier who was charged with violating EU sanctions shortly after the start of the war in Ukraine. French customs authorities alleged that the master was aware of the ownership questions of the vessel and acted accordingly when it departed from Rouen, France on February 25, 2022.

The vessel, the Baltic Leader (7,100 dwt) made a port call in France and then departed with its destination believed to be 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 for suspected violations of EU sanctions on certain Russian companies.

Built in 2000, the vessel moved through various registries and names with different owners before coming to Russia in 2021. At the start of the war, databases were reflecting the vessel as being 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 master of the vessel was being tried in absentia with the French prosecutor arguing that as master he had knowledge of the ownership and acted accordingly. Prosecutors were seeking a tax fine of €8 million and a further €8 million requested by French customs as well as a suspended sentence of 10 months in jail for violating the sanctions.

PSB Leasing argued that it had transferred ownership of the vessel days earlier and that as such Transmorflot was the actual owner of the vessel when Russia invaded Ukraine. As such they said the vessel was not under the sanctions against the bank.

During the hearing in September, prosecutors admitted the uncertainty of ownership but argued that the vessel had remained under the control of a sanctioned entity and as such the captain was responsible. Defense lawyers argued the doubt should “benefit the defendant.”

The Douai Court of Appeals in December 2022 ruled the vessel was owned by Transmorflot, which was not sanctioned and had released the vessel. The ruling yesterday in the case against the master also acquitted the master on the charges he knowingly violated the sanctions.