Russian Artillery Strike on Ukrainian Civilian Tugboats Highlights Importance of War Risk Coverage in High-Conflict Zones

On Oct. 31, two civilian tugboats pushing a grain barge were hit by Russian artillery fire near Ukraine’s Black Sea port of Ochakiv.

According to Ukraine’s Operational Command South, “a fire broke out and control of the vessels was lost. Two crew members were killed, one was rescued with injuries, the fate of another is unknown.”

This is but the most recent of a series of Russian strikes against commercial shipping traffic in the Black Sea.

Since the outbreak of the war, Russia has targeted multiple merchant vessels operating in the region, including but not limited to: (1) the M/V YASA JUPITER, which was struck by a Russian anti-ship missile on Feb. 24; (2) the M/V MILLENIAL SPIRIT, which was hit by a Russian missile while transporting 600 tons of diesel fuel on Feb. 25; (3) the M/V NAMURA QUEEN, which was reportedly damaged by Russian rocket fire at anchorage in Yuhzny on Feb. 25; and (4) the M/V BANGLAR SAMRIDDHI, which was struck by a Russian missile on March 2, killing third engineer Hadisur Rahman and leading to the first marine insurance claim filed as a result of the conflict.

These incidents emphasize the importance of obtaining separate war risk coverage in addition to the standard marine risk policies familiar to commercial vessel operators. Notably, most marine risk policies, expressly exclude coverage for losses resulting from hostilities or warlike operations, which are frequently carved out by the “War, Strike and Related Exclusions” clause.

In parsing out which policy will provide cover, American admiralty courts apply the doctrine of causa proxima non remota spectator (“the immediate not the remote cause is considered”) to ascertain the “predominant and determining” or the “real efficient” cause of the loss.

Under this doctrine, for the war risk policy to provide cover, “there must be some causal relationship between the warlike operation” and the casualty. Likewise, if the casualty is not causally related to warlike operation, but more directly caused by a peril of sea, then the marine risk policy will provide cover to the extent no applicable exclusions apply.

In the casualties listed above, the question of which policy would provide cover is straightforward. These losses, caused by artillery and missile strikes launched by a de jure sovereign, i.e., Russia. Accordingly, these casualties were unquestionably caused by warlike operations, as such, this highlights the need for War Risk coverage for vessel owners engaged in commercial shipping operations also at risk of such causes of loss like those recently incurred in the Sea of Azov and the Black Sea.

Please contact Gregory Burts or any member of the Phelps Admiralty team if you have questions or need advice or guidance.