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<P align="center"><font color="#660000"><b><font face="Arial, Helvetica, sans-serif" size="4" color="#990000">Frequent
Legal Issues for Contractors on <br>
Sakhalin Oil and Gas Projects<br>
</font></b></font><font size="2" face="Arial, Helvetica, sans-serif">(Appearing soon in the Russian Energy Law Journal)</font></p>
<p align="center"><font color="#990033" size="2" face="Arial, Helvetica, sans-serif"><strong>XIV.
Cabotage</strong></font></p>
<p align="left"><font size="2" face="Arial, Helvetica, sans-serif"><em>Presented
by <a href="../subpage/attorneys.html#rpg_vlad">Natalia Prisekina</a>, senior associate attorney and Director of the
Vladivostok branch office of Russin & Vecchi</em>.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Russian maritime
law requires that Russian flag carriers be used for domestic cabotage,
which is
all marine transportation between Russian
ports. There are two exceptions to the requirement of Russian flag carriers:
(1) when a specialized vessel is needed, and no such vessel is available
in the stock of Russian flag vessels; and (2) when use of a foreign flag
vessel is needed for urgent carriage and towage, and there is no possibility
for vessels flying the Russian flag to render the required service <font size="1">(157)</font>.
Cabotage by foreign flag vessels is permitted only between Russian
ports that
are open to foreign vessels <font size="1">(158)</font>. A list of such
ports is published and periodically updated in the official publication "Notifications
to Navigators." </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The Russian Ministry
of Transport issues permits for cabotage by foreign flag vessels. Applications
should be submitted directly to the Ministry,
not to local offices. Ministry of Transport Regulations set forth detailed
requirements for applications for permission to use foreign flag vessels
for cabotage in Russian waters <font size="1">(159)</font>. Separate
permission is required for each foreign flag vessel.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Despite the exceptions set forth above to the Russian flag carrier requirement,
a cabotage permit applicant need not prove that Russian vessels are unavailable,
as the Ministry makes this determination on the basis of its own roster
of available Russian vessels. The applicant also is not required to state
when the vessel is needed. </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">A person using a
vessel in his own name, irrespective of whether he is the owner of
the vessel or has a different legal title, should file
the cabotage permit application <font size="1">(160)</font>. The applicant
should submit the application in Russian with the RF Ministry of Transport,
addressed to the Head of
the State Sea Fleet Service of the RF Ministry of Transport, specifying
the following:</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">- name and address (location) of applicant;<br>
- vessel name;<br>
- vessel flag;<br>
- name of the port (place) where the vessel is registered;<br>
- identification number of the vessel, assigned by International Maritime
Organization;<br>
- call signal of the vessel;<br>
- place and the year of vessel construction;<br>
- type and purpose of the vessel, area of her sailing;<br>
- main technical specifications of the vessel including tonnage (gross
and net), full carrying capacity and main dimensions of the vessel;<br>
- vessel class and term of validity of classification certificate;<br>
- name and quantity of the cargo declared for carriage (data sufficient
to allow identification of vessels subject to towage or other floating
objects);<br>
- port of loading (departure) and port of discharge (destination).</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Copies of the certificate of ownership to the vessel, the certificate
of the right of use of the foreign flag vessel, and the classification
certificate should accompany the application.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The State Fleet Service of the RF Ministry of Transport considers the
necessity of involving foreign tonnage in the carriage (towage) within
five days from receipt of the application and notifies the applicant
of its decision. Permission may be denied if the application is filed
by an improper person (not the ship owner or the person using the ship
in his name), or if the documents filed do not meet the established requirements.
A denial must be issued in written form with details explaining the reasons
for such denial. Documents filed as part of the application are returned
to the applicant.<br>
<br>
If permission is granted, the Navigation Security Department of the
RF Ministry of Transport notifies the captains of ports within which
foreign flag vessels have been permitted to carry (tow) cargo.<br>
</font><font face="Arial, Helvetica, sans-serif"> </font> </p>
<p><font size="2" face="Arial, Helvetica, sans-serif"> <font size="1">(157)</font></font><font size="1" face="Arial, Helvetica, sans-serif"> Russian Government Resolution No. 404 of May 24, 2000, Item 1.<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"> <font size="1">(158)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">Russian
Government Resolution No. 404 of May 24, 2000, Item 2. <br>
</font><font size="2" face="Arial, Helvetica, sans-serif"> <font size="1">(159)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">RF
Ministry of Transport Regulation, August 23, 2001.<br>
</font><font size="2" face="Arial, Helvetica, sans-serif"> <font size="1">(160)</font></font> <font size="1" face="Arial, Helvetica, sans-serif">RF
Ministry of Transport Regulation, Item 5, August 23, 2001.</font><font size="2" face="Arial, Helvetica, sans-serif"><br>
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<td width="29%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XV.html">Next</a></font></strong></div></td>
<td width="36%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XIII.html">Previous</a></font></strong></div></td>
<td width="35%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="RusEnergyLaw_index.html">Table of Contents</a></font></strong></div></td>
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