News date: 5 November 2025
Sergey Nedelko, Attorney at Law, Counsel, and Head of Ilyashev & Partners’ Odesa Office, delivered a speech at the scientific and practical seminar “Maritime Law and Insurance: Today’s Realities,” which took place on October 24, 2025, in Odesa. The Ukrainian Bar Association Maritime Law Committee and the Transport Law Committee of the Odesa Region Bar Council organized the event.
In his presentation “Maritime Risks and P&I Club’s Letters of Undertaking: Practice of Application During Martial Law,” Sergey Nedelko focused on comparing the procedure for obtaining a bank guarantee and a P&I Club’s Letters of Undertaking for the release of a vessel from arrest. He emphasized that the advantage is undoubtedly on the side of the P&I Club’s Letter of Undertaking, which is a more flexible, operational, and financially efficient instrument for securing maritime claims.
At the same time, the attorney noted that in Ukraine, P&I Club’s Letters of Undertaking do not have a proper regulatory framework, which complicates their practical application. According to Sergey Nedelko, in most maritime jurisdictions worldwide, such as the United Kingdom, Canada, Australia, and Singapore, P&I Club letters of undertaking are recognized by courts as sufficient security for a claim. In contrast, Ukrainian procedural law does not explicitly provide for such a form of security.
“P&I Club’s Letter of Undertaking is a global standard that allows avoiding vessel arrests or facilitating their prompt release, reducing financial risks, and preventing prolonged vessel downtime. Ukrainian practice should take a step toward the best global practices. Amendments to the Commercial Procedural Code of Ukraine and the Commercial Maritime Code will effectively equate P&I Club’s Letters of Undertaking with guarantees from Ukrainian financial institutions, ensuring the effective application of international standards in maritime law,” Sergey Nedelko noted.
The event brought together leading maritime lawyers, representatives of major P&I Clubs and shipping companies, P&I Club correspondents, maritime law experts and scholars, arbitrators, and members of the international maritime community.
Participants discussed types of cargo and vessel insurance under martial law, charterers’ insurance coverage, sanctions, and other topics important to the industry.
The Ukrainian Bar Association Maritime Law Committee unites attorneys and experts specializing in maritime law, insurance, transportation, and commercial shipping. The Committee promotes the development of maritime law in Ukraine, the dissemination of best practices, the exchange of experience among industry professionals, and the establishment of dialogue between the professional community, business, and government authorities.
The Transport Law Committee of the Odesa Region Bar Council deals with legal regulation of the transport sector and promotes the development of legal practice in maritime, road, rail, and aviation industries.