BELGIUM Law and Practice Contributed by: André Kegels, Kegels Advocaten
cially Designated Nationals (OFAC SDN) sanctions list, results in limitations on what Belgian entities are willing to do, even if under Belgian or EU law such limitations do not exist. In respect of the Russia-Ukraine conflict, Belgium adheres to the EU regulations and its far-going sanctions. Especially Council Regulations (EU) No 833/2014 and (EU) No 269/2014 as adapted many times. Under both EU Regulations, derogations can be obtained from the competent authority of a mem - ber state, therefore also in Belgium. 9.4 International Conflict Many Belgian transport and trading interests have been impacted by the war in Ukraine or incidents in the Red Sea, with increased litigation, especially with marine insurers, being one of the consequences. As far as the carriage of goods, contracts of affreight - ment or charterparties are concerned, there are ongo - ing disputes stemming from the blockade of ves - sels and cargo in Ukrainian ports. Courts have been involved, notably ordering carriers with cargo on board at the onset of the war to issue bills of lading despite the vessels being blocked in Ukrainian ports. Another area of contention involves cargo interests litigating with marine insurers over the concept of “abandonment” under the Antwerp Marine Policy. In essence, “abandonment” refers to a scenario in which cargo interests or vessel owners, having lost, or lost control over, cargo, can relinquish that cargo to the insurers. This concept is akin to a constructive total loss (CTL) under common law systems. Some Belgian parties involved in maritime ventures have turned to mediation to equitably distribute the costs of transporting cargo to its destination among cargo interests, cargo insurers, and carriers or owners. Moreover, many trades, international sales and com - mercial relationships have been abandoned due to the EU sanctions regime making them illegal. Even if the legal position is clear (usually force majeure), this situ -
ation poses particular challenges in sales contracts where the sanctioned party has already completed their part of the agreement, such as making a pay - ment, but the Belgian party is subsequently barred from fulfilling their delivery obligations due to these sanctions. Also, the EU sanctions are applicable to EU citizens, wherever they are in the world. This is a relatively novel approach by the EU, so proper legal advice is cru - cial. This wide-reaching enforcement has surprised many and highlights the importance of adherence to these sanctions. Special attention is required to pre - vent attempts to circumvent these sanctions, as such actions are strictly prohibited. 10. Additional Maritime or Shipping Issues 10.1 Other Jurisdiction-Specific Shipping and Maritime Issues The NBMC entered into force on 1 September 2020 and covers most relevant Belgian regulations regard - ing not only arrest, privileges, and mortgages, but also carriage and chartering. It also focuses on the safety of shipping in accordance with the International Con - vention for the Safety of Life at Sea (SOLAS) regula - tions. The NBMC has been changed numerous times already, so it is important to realise that knowledge acquired in 2021 or 2022 may no longer be relevant in 2024. From 2025 onwards new legislation also applies to the interior waterways sector. In addition, the Belgian regions have enacted their own legislation since 2020 in the fields of law over which they have authority. In 2022, for example, the Flemish region enacted its Shipping Decree, which contains provisions regarding liability, limitation, wreck removal obligations, etc. All too often, local practition - ers must explain that there is more than just “Belgian law” in Belgium.
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