Factual Background

Between 1991 and 2006, the Claimants and a state-owned education institution of Ukraine, [X], entered into a series of contracts concerning the use of the Khersones, a windjammer sail training ship owned by the institution. Under the contracts, the institution used the Khersones to train cadets for Ukraine’s national fishery fleet while the Claimants used it to market sailing tours and other onboard events, thus lowering the ship’s operational expenses.

The parties’ relationship gradually deteriorated following disagreements concerning the proper operation of the contracts.

The Claimants contended that the relationship with the ship’s owner worsened following Ukraine’s change of government in 2005. On April 5, 2006, a Ministry of Ukraine prohibited the Khersones from leaving the borders of the territorial waters of Ukraine until clarification of matters related to its joint operation. This prevented the Khersones from making a scheduled departure for the 2006 summer sailing season. The Claimants never regained control of the Khersones after that date. Their main claim concerned damages incurred as a result of the travel ban.

A more detailed description of the factual background may be found in the Decision on Jurisdiction of March 8, 2010.