Kiev Believes Ukraine's Maritime Industry Lost $360Mln Due To Situation In Sea Of Azov

Kiev Believes Ukraine's Maritime Industry Lost $360Mln Due to Situation in Sea of Azov

Ukraine's maritime industry has lost almost 10 billion hryvnia ($360 million) because Russia has been allegedly preventing Ukrainian vessels from passing to and from the Sea of Azov through the Kerch Strait since November, Ukrainian Infrastructure Minister Volodymyr Omelyan told the UNIAN news outlet on Friday

KIEV (Pakistan Point News / Sputnik - 01st February, 2019) Ukraine's maritime industry has lost almost 10 billion hryvnia ($360 million) because Russia has been allegedly preventing Ukrainian vessels from passing to and from the Sea of Azov through the Kerch Strait since November, Ukrainian Infrastructure Minister Volodymyr Omelyan told the UNIAN news outlet on Friday.

Omelyan has repeatedly claimed that Russia is allegedly barring Ukrainian vessels from entering and leaving ports in the Sea of Azov following the incident with Ukrainian naval ships last November. At the same time, he subsequently admitted that ships were passing through the Kerch Strait. Both Crimean authorities and the Kremlin have refuted the allegations.

"This is a huge sum [in losses], the figure is approaching the 10 billion hryvnia mark, if we take into account both state-owned enterprises and the Ukrainian Sea Ports Authority, and the impact on the region," the minister told the outlet, adding that the situation with the navigation of vessels in the Kerch Strait showed signs of improvement.

The minister also noted that shipowners had started to send their cargo to ports located in the Black Sea instead of those situated in the Sea of Azov because they were afraid of suffering losses.

"We now have a different threat, we predicted it as well. Following these events, shipowners are reluctant to lend their ships, because they understand the risks of losses [they will suffer] in case of possible demurrage. Therefore, it is much easier for them to work with other ports in the Black Sea than [with the ports] in the Sea of Azov," Omelyan added.

The situation in the region escalated last November when three Ukrainian naval vessels tried to pass through the Kerch Strait without obtaining permission from Russia, thereby crossing the country's sea border illegally. Russian authorities seized the ships and arrested the crew who were on board. Russian President Vladimir Putin called the incident a provocation orchestrated by Kiev.

Last December, the Russian Federal Agency for Maritime and River Transport said that November's incident did not lead to a decrease in the frequency with which ships passed through the Kerch Strait. On the contrary, the number of ships that passed the strait between November 26 and December 12, 2018, slightly increased year-on-year, according to the agency's figures.