LONDON, March 15 (Reuters) - Since Russia invaded

Ukraine two years ago, nearly 50 merchant ships have been

languishing in its waters, stuck in ports too dangerous to sail

from.

But while these ships have not moved, some of their owners

have changed, highlighting the risks some market players are

prepared to take in the hunt for bargains.

A Reuters analysis of port and ship tracking data detailing

the line-up of ships has found at least nine vessels stranded in

Ukrainian ports have been sold since February 2023 in a series

of discrete deals.

The sold ships are stuck in Mykolaiv, Kherson and Mariupol

ports - all of which remain inaccessible. At least five others

were sold while in Ukrainian ports but have since been able to

sail from the country, according to three industry sources.

For their original owners, the length of time the ships were

unable to sail meant they could claim the majority - if not all

- the value of the vessel on insurance, according to

underwriters and shipping sources familiar with the deals.

That allowed the ships to be sold on at a discount to

investors willing to take a bet that at some point the vessels

can sail again.

"Who wants to buy a ship in a war zone? Some people do,"

said Richard Neylon, partner at law firm HFW, who has worked on

several of these deals.

"Category one is people who think they can get the ship out,

and a few have got out. Category two are people who recognise

they are in it for the long haul, and ideally they factor in

that risk."

Neylon said most ships were going for around 25% of their

original value, though the three industry sources said some had

sold at as much as 80% of their value.

The price depends on the ship's condition, they said, with

some likely to be only fit to be sold for scrap.

TRADE RUCTIONS

The war in Ukraine created an unprecedented ruction for the

shipping industry, turning ports that were crucial to the global

trade in grain and metals into mined, no-go areas overnight.

The gross tonnage of ships calling at Ukrainian ports during

the first quarter of 2023 was down more than 70% compared with

the average in the year before the invasion, according to

analysis by the OECD published in November 2023.

Currently, ships can only leave Ukraine from three ports -

Odesa, Chornomorsk and Pivdennyi - along a temporary route set

up for civilian vessels that has no formal safety guarantees,

though Russia says it does not target non-military ships.

London-listed shipping company Taylor Maritime Investments ( TMILF )

had a ship stranded in Ukraine at an undisclosed port and

claimed insurance in late February 2023, after which the group

said the ship left its ownership. The company declined to give

further details.

"We put the safety of our crew first in all circumstances

when there's real risk," CEO Edward Buttery told Reuters.

"I don't want to be responsible for people getting injured

or worse when I have the ability not to have to make that

decision."

Others, though, are willing to take chances. The three

sources said Hamburg-based shipping company Blumenthal JMK

bought at least four ships in Ukraine, including the

Liberian-flagged Primus which sailed out of Odesa last August

and is listed as being managed by Blumenthal's unit in Asia,

with the owner's details care of Blumenthal in Asia.

The company did not respond to requests for comment.

Other buyers appear to be companies registered in Liberia or

unknown parties, according to shipping records.

But even at low prices, the stakes are getting higher for

buyers. Insurance is far more expensive than for owners who

bought the ships before the war, and is now renewed on a weekly

basis.

The cost of maintaining vessels includes paying for

insurance - a percentage of the ship's value - which is

currently running at around 1.5% weekly for additional war risk

insurance alone.

The stuck ships' value varies from $20 million to $200

million, the three sources said.

Owners also need to pay for keeping the vessel maintained

and other expenses including a basic crew, usually local

Ukrainians, the sources added.

Even when stationary, ships in Ukrainian ports are

vulnerable.

On Feb. 27, the Turkey-flagged general cargo ship Kuruoglu-3

was hit by two Russian missiles while docked in Kherson, causing

the vessel to list on its side, with concerns that it may

eventually sink as it is not fully crewed, a representative of

the vessel's owner Kuruoglu Maritime told Reuters.

But some ship buyers are familiar with such risks.

"It's surprising the markets ... that you had no idea

existed," said Adrian Cox, CEO of insurer Beazley.

"Just like there's a market for distressed debt, there's a

market for stuck ships."