Azerbaijan, Baku, Feb. 7 / Trend /
UK-based Hill Dickinson represents the interests of the State Oil Company of Azerbaijan Republic (Socar) Caspian Sea Oil Fleet at the International Maritime Arbitration to receive compensation for rescuing Russian dry-cargo ship Sarmat-1, Socar reported on Feb. 6. Owner of the ship refused to pay compensation.
Sarmat-1 suffered a disaster 30 miles from Baku in late 2008. A Caspian Sea Oil Fleet vessel rescued and towed the ship to Baku.
The Caspian Sea Oil Fleet applied to the Hill Dickinson Greece Office to apply to the International Maritime Arbitration.
Azerbaijan State Maritime Administration said that the ship may be released only if the issue is addressed by the International Maritime Arbitration and Sarmat-1 owner's insurers issue a bank guarantee to the Caspian Sea Oil Fleet.
Sarmat-1 was detained by Azerbaijani court. The vessel was sailing from Astrakhan, Russia, to Anzali, Iran, with a cargo of lumber and metal (1655.2 tons).
The ship was arrested because owner refused to reimburse expenditures in line with the 1989 International Convention on Rescue Operations. The Caspian Sea Oil Fleet has applied to the International Maritime Arbitration to resolve the issue.
Insurers, plaintiff and defendant are negotiating in line with international conventions and available experience.
A technical malfunction in the steering compartment caused an accident. Other damages resulting from the accident were also repaired in Baku.
The Astrakhan Rescue Coordination Center reported Sarmat-1 was in distress on Dec. 15.
Sarmat-1 was built in 1986. There were no causalities.