UK court awards costs for ship trapped in Ukraine but rejects insurance claim

LONDON, October 21, 2026 — The Commercial Court awarded Ithaca Prospect LLC and manager Dalex Shipping Co. $550,134.52 for crew expenses and $192,000 for fuel. Deputy Judge Peter MacDonald Eggers found that keeping the Ithaca Prospect ready to escape Mykolaiv was reasonable despite uncertain departure prospects. Some legal costs remain to be quantified.

The vessel became trapped after Russia invaded Ukraine in February 2022. Ukrainian authorities later arrested its potash cargo over alleged customs breaches involving Belaruskaliy shipments. The judgment records that import or transit of those shipments through Ukraine had been prohibited since Dec. 8, 2021.

Belaruskali was already subject to U.S. sanctions imposed in August 2021. The Treasury Department subsequently targeted Belarusian Potash Co., which handled its trading and exports, in December that year. Those measures formed part of Washington’s response to repression by the Belarusian government following the disputed 2020 presidential election. U.S. Department of the Treasury OFAC’s initial Belaruskali wind-down authorization expired Dec. 8, 2021, although a separate license permitted specified transactions involving Belarusian Potash Co. through April 1, 2022, including transactions in which Belaruskali held an interest. Those authorizations were conditional, rather than blanket permission for potash trade.

The court nevertheless decided insurance obligations, rather than whether the shipment breached sanctions. Insurers’ earlier $16 million settlement and arrangements to sell the ship did not amount to accepting its abandonment, defeating the replacement insurance claim. Port fees and legal expenses relating to cargo arrest or liens were also rejected.