Shipowner: we will not pay compensation for the X-Press Pearl disaster

In an interview with AFP, CEO Shmuel Yoskovitz announced that the Singapore-based company will not pay the first instalment of the billion compensation ordered by the Colombo Supreme Court. "It undermines the principle of limitation of liability on which maritime trade is based. We have already spent 0 million to repair the damage." Sri Lanka had announced criminal proceedings in the event of non-compliance.

Singapore (AsiaNews) - X-Press Feeders is refusing to pay the billion compensation ordered by a Sri Lankan court for causing the worst environmental disaster in the country's history. This was stated in an interview with AFP by its CEO Shmuel Yoskovitz, who said that the payment would have global repercussions on the shipping industry and ‘set a dangerous precedent’.

The cargo of the X-Press Pearl included 81 containers of dangerous goods, including acids and lead ingots, as well as hundreds of tonnes of plastic pellets. The ship had been rejected by ports in Qatar and India, which did not authorise the unloading of nitric acid, before arriving in Sri Lankan waters.

Tons of plastic microbeads from the ship invaded an 80-kilometre stretch of coastline along the western part of the island. Fishing was banned for months.

Last July, the Sri Lankan Supreme Court ordered the company to pay Colombo “initial” compensation of billion within a year, with a first instalment of 0 million to be paid by the end of September. “We are not paying because the entire basis of maritime trade is founded on limitation of liability.

This ruling undermines that principle,” Yoskovitz said. The absence of limits, he added, could lead to higher insurance premiums, which would be passed on to consumers.

Reiterating his apologies for the incident, Yoskovitz said X-Press Feeders has already spent £120 million to remove the wreckage, clean up the seabed and beaches, and compensate affected fishermen. ‘We are willing to pay more, but it must be within the framework of international maritime conventions, for a sum that is final and conclusive, so that we can close the case and move on,’ he said.

In Colombo, the Supreme Court has set a new hearing on the implementation of the ruling. One of the plaintiffs seeking compensation has called for further research to assess the long-term impact on Sri Lanka's marine ecosystem.

It is still unclear how the Supreme Court will be able to enforce its ruling. However, in its 361-page decision published in July, the Court ordered the police and the State Attorney to initiate criminal proceedings for non-compliance if the parties are found on Sri Lankan territory.

Yoskovitz expressed concern for the Russian captain of the ship, Vitaly Tyutkalo, who has been stranded in Sri Lanka for more than four years, as well as for the company's third-party agents in the country. The company had offered to pay a fine to secure the captain's release, but the offer was rejected, according to the CEO.