Russian Shipping Giant ‘Sovcomflot’ To Sell Ships Ahead Of Sanction Deadlines

The maritime sector of Russia is experiencing a wind-down of multiple services, including ship certification from some of the best foreign providers – imperative for accessing the ports and also, securing insurance – shipping firms pulling out and engine makers reportedly suspending training on equipment following Moscow’s invasion of Ukraine.

Russian shipping major, Sovcomflot, has decided to sell about one-third of the firm’s vessels to repay loans before the Western sanctions are implemented. The information was provided by Lloyd’s List on Monday.

Sovcomflot has lately indulged in negotiation discussions with the firm’s clientele from China and Dubai regarding the selling of nearly 40 of 121 vessels, a senior industry official who is familiar with the deals informed Lloyd’s List.

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Representation Image – Credits: Novatek

The EU and the UK have imposed sanctions against Russia — one detail is that banks must cut transactions to Sovcomflot after 15 May. The shipping major has to send unpaid loans to relevant financiers and banks before 15 May.

Per Lloyd’s List, this has compelled Sovcomflot to put a third of its ships on the market. The official reported Lloyd’s List that eight of the firm’s ships have been sold — Koban Shipping, a ship management firm, has reportedly purchased four.

Koban Shipping did not respond to Insider’s request for comment right away. China-based buyers had also been in deals that are almost complete; the industry official has informed Lloyd’s List.

Sovcomflot has, however, not responded to Lloyd’s List’s or Insider’s requests for comment regarding its ship sales. It comes through as the EU proposes to levy some more sanctions on Russia, including its ban on Russia’s oil imports with strategies to phase out crude in the next six months.

Russian vessels are also encountering challenges in securing their marine fuel as sellers are no longer serving vessels that fly the flag of Russia at major hubs of Europe, including Malta and Spain.

Reference: businessinsider.in

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