Russian-flagged ships with certain export cargo to get priority at the country's seaports
A special information system based on TosTech digital platform to be developed
The Russian Government has prepared amendments to the Merchant Shipping Code of the Russian Federation, providing that ships flying the Russian flag will obtain priority in shipping certain export cargo from Russian seaports. The corresponding bill was submitted to the State Duma for review, October 5, 2023.
The amendments were prepared in order to fulfill the instructions of the Russian President Vladimir Putin and provide for the creation of a regulatory mechanism that will protect the interests of Russian cargo owners and shipowners in the event of external unfavorable conditions.
“Due to the sanctions regime, foreign consignees and Russian shippers give preference when chartering ships to foreign flags and foreign shipowners, which leads to loss of income for Russian shipping companies and a significant decrease in tax revenues. Further development of the situation could ultimately lead to the cessation of the activities of Russian shipping companies, their bankruptcy and the loss by the Russian Federation of the merchant fleet it controls,” the explanatory note says.
It is proposed to give Rosmorrechflot the authority to ensure the functioning of a special information system through which the export of certain cargo from the seaports of the Russian Federation will be organized. This system will include the following options: submission of applications for the export of goods by Russian ships; placement by shipowners of their own proposals for the use of Russian ships, including for the export of cargo at the request of shippers; automatic generation of information about the sender’s receipt of the right to use other vessels, if within three days from the date of publication of the application, no proposals for export have been received from Russian shipowners.
Monitoring compliance with the requirements for priority use of Russian ships will be carried out by the Harbourmaster. At the same time, the Harbourmaster will be able to refuse to issue permission for a foreign-flagged vessel to depart the port if the sender has not received the right to export cargo on such a vessel in the information system.
An information system for the export of goods will be created on the basis of the Russian Federation’s TosTech digital platform. In connection with the need to develop the system, the provisions of the draft federal law are envisaged to come into force on March 1, 2025.