On the register - Ship registration in Russia

IN November 2000 the Russian Ministry of Transport approved the Rules for the Registration of Ships and Titles to Them in Merchant Sea Ports. All seagoing vessels flying the flag of the Russian Federation, except sport and leisure craft and vessels of less than 80 tons, should be registered with the State Register of Ships. Russia belongs to a group of countries where ship registration is not centralised but carried out at port. There are, therefore, a number of ports approved by the Ministry of Transport for this purpose, and harbour masters have been authorised to deal with registrations.

Ship registration charges are currently collected in line with the old regulations, so there is no annual tonnage tax. But there is a fee for registration, along with several recording fees. These charges are, however, currently approximately $120 per registration - probably the lowest in the world.

The Merchant Shipping Code of the Russian Federation, which has a separate chapter and a number of articles devoted to ship registration, does not allow double registration of ships with both Russian and foreign registers. According to the code, vessels registered with a foreign state's register may be entered in the Russian register as long as its foreign registration has been terminated and the documents confirming this have been provided.

Obtaining consent from the Russian Ministry of Transport for navigation under the Russian flag is a precondition for the registration of foreign ships in Russia. This is also new for Russian law as previously such requirements were only applicable to fishing vessels.

The registration of vessels with the bareboat charter register is also now governed by law for the first time. The main reason for adopting bareboat charter registration is to be found in the ship finance arrangements of the Russian shipowners, and access to the Russian Federation internal waters and the Caspian Sea by foreign entities. The wording of the law, however, restricts the use of bareboat charter registration to foreign vessels only. Russian vessels, i.e., those belonging to Russian entities and flying the Russian flag, cannot be entered with this register.

Any ship registered with a foreign register shall be subject to registration in the bareboat charter register for one month following the decision to grant the vessel navigation rights under the Russian flag. The following documents are required:

- Extracts from the registration book of the foreign state in which the vessel was registered immediately before the change of flag. This needs to indicate the shipowner and the mortgagee of the ship's registered mortgage or the ship's encumbrances of the same nature, if recorded;
- The written consent of the shipowner and the mortgagee for the transfer of the ship to the state flag of the Russian Federation;
- The document issued by the competent authorities of the foreign state in which the ship was registered immediately before the change of flag. This should confirm that the right to sail under that particular state's flag has been suspended for the duration of the ship's right to sail under the Russian flag;

  • The original and a copy of the bareboat charter
  • The vessel's seaworthiness certificate
  • The vessel's measurement certificate
  • The passenger certificate for a passenger ship

- Information about the identification number of the ship conferred by the International Maritime Organisation (IMO);
- The document confirming that the charterer of the ship under the bareboat charter meets the requirements made for the shipowner in accordance with Subsection 1 of Section 15 of the Russian Federation Merchant Shipping Code;
- The decision on the ship's name taken by the respective federal executive body.

There is no limitation in terms of the number of shareowners in the ship. However, should the vessel be managed under trust, the details of the trustee shall be entered into the registry.

Registration is normally completed within one month of the date of application. The initial registration of a newly built vessel will be completed within one month of the date of its launch while, for vessels acquired outside the territory of the Russian Federation, registration will be carried out within one month of the date of its arrival at a Russian port.

The shipowner is free to choose and change the port of registration of its vessel, but should note that this will not only change the vessel's registration number but also all the earlier documentation issued to the ship.