Ukraine Seeks Auctioneer to Sell Seized Turkish Cargo Ship
Ukraine’s National Agency for Tracing and Asset Management (ARMA) is calling for proposals to manage the sale of a Turkish cargo ship it seized in 2024 on charges that it looted grain from Crimea. It is the latest step in efforts by Ukraine to sell off seized vessels to raise hard currency to fund its war efforts.
ARMA is looking for someone to organize the sale of the Usko MFU (2,850 dwt). Built in 1982, the ship is registered in Cameroon, but during its years in service, it has also been registered in Equatorial Guinea, Sierra Leone, St Vincent and Grenadines, and Croatia. The ship is 308 feet (94 meters) in length. It has a spotty safety record frequently being cited for deficiencies during Port State Inspections.
“The vessel, despite the technical need for further development, has significant investment potential. In particular, it concerns the presence of the main power unit, basic navigation infrastructure, and the possibility of further restoration or re-equipment. The asset is attractive both for future commercial use and for companies specializing in ship repair or recycling of marine transport,” writes ARMA in the sale notice.
Proposals are being accepted until July 4, and then it will select an auction organizer for the sale of the cargo ship. The selected organizer will be responsible for obtaining an independent valuation and then organizing the sale.
The ship was detained on the Danube at Reni, Ukraine on July 2, 2024, on allegations it had turned off its AIS signal and was bound for Moldova. The Prosecutor General supplied more specifics saying according to its investigation in November 2023 the ship entered and left Sevastopol with more than 3,000 tons of agricultural products intended for a Turkish company. To hide its activity the vessel turned off its AIS transmissions. At the end of May 2024, they reported the ship returned to Sevastopol where it unloaded cargo from Turkey. The AIS signal was again turned off.
The Ukrainians searched the ship and confiscated records and electronics. When it was stopped there were 12 crewmembers aboard in including a captain from Azerbaijan. Reports said Ukraine was prosecuting the captain and another officer. The media is now saying the captain was released with a fine. The Turkish owner of the vessel denied the allegations saying the vessel had been to Crimea under a prior owner.
The courts ordered the ship confiscated in October 2024 for damages to the state and ARMA reports it has management of the ship under a court order. ARMA seeks to manage and sell the assets it receives to fund the government. Earlier this week it filed with the court to take control of nine smaller vessels, including three Russian VolgoBalt tankers. It asked the court to prevent the ships from going to sea as a first step toward taking management. At the end of last week, it was also successful in the court in stopping the removal of a Panama-flagged bulker Emmakris III (70,000 dwt) that has been detained in Chornomorsk since the start of the war. In August 2024, ARMA advertised for a manager for the vessel saying it would be used to store grain.
ARMA also continues its fight over the seized luxury yacht Royal Romance which is linked to exiled businessman and Russian supporter Viktor Medvedchuk. Ukraine was successful in having the yacht seized in 2022 while it was in Croatia. After a period of mandatory maintenance, ARMA says it will contact the Prosecutor General's Office in an effort to update the process of selling the seized yacht in accordance with current legislation.