Russia's Sovcomflot plans to sell part of its fleet

Western sanctions take effect

Reuters reported that the leading Russian shipping company Sovcomflot wants to sell part of its fleet, as it announced on Friday. The company is struggling with Western sanctions and is now trying to repay outstanding loans.

Sovcomflot is facing growing difficulties in concluding charter contracts as ports, end customers, marine insurers and other freight companies pull out of the Russian business due to sanctions imposed in response to Moscow's invasion of Ukraine. The shipping newspaper Lloyds List reported, citing unnamed sources, that up to a third of Sovcomflot's own fleet is up for sale as the company attempts to repay Western loans. Sovcomflot declared that the "rumours" about the sale of a third of the fleet were "exaggerated".

"Obsolete shipping facilities and ships whose further utilisation appears impossible due to the restrictions imposed on the Russian merchant fleet are being offered for sale," Sovcomflot officially stated.

The company owns and operates 122 ships, including 50 crude oil tankers, 34 tankers for the transport of oil products, 14 shuttle tankers, 10 gas tankers and 10 icebreakers.

Source: Reuters; Lloyds, own research