Proposed Legislation Aims to Block Russian Vessels from U.S. Ports

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As sanctions continue to ratchet up in response to Russia's unprovoked invasion of Ukraine, global responses in the maritime sector are moving at breakneck speed. Indeed, several governments are taking steps to block vessels owned or controlled by Russian interests from entering their ports. British and Canadian governments are reportedly enacting or have enacted legislation prohibiting Russian vessels from entry to ports and internal waters. Britain has ordered its ports to block any vessels that are Russian-flagged or believed to be registered, owned or controlled by any person connected with Russia. Further sanctions against Russian shipping are expected, although the extent of Russian-connected vessels could extend well beyond 6,000 vessels, creating a daunting task for regulators and a higher risk operational environment for the rest of the industry, in particular with the diligence required to assess whether a vessel is flagged, owned, beneficially owned or operated by entities based in Russia.

In parity with similar international efforts, Rep. Don Young (R-Alaska) has announced that he is drafting legislation to authorize the seizure of Russian yachts and commercial vessels currently within the waters of the United States in a forthcoming bill H.R. 6890, the Bringing Oligarch Accountability Through Seizure (BOATS) Act. The BOATS Act aims at prohibiting Russian vessels from operating in the navigable waters of the United States and will also authorize the seizure of Russian-owned vessels flying flags of convenience from other nations. The text of the bill is not yet available but was introduced into Congress on March 1, 2022. It will typically be considered by committee next before it is possibly sent on to the House or Senate as a whole.

The proposed BOATS Act comes during an important week of maritime legislation as the House Committee on Transportation and Infrastructure advanced H.R. 6865, the Coast Guard Authorization Act of 2022. That bill authorizes a level of support that enhances U.S. Coast Guard operations, which reportedly includes cyber infrastructure. Given the fast pace of emerging Russian-related measures, the progress of both bills will be worth tracking for any amendments and final text if passed.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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