New US sanctions are creating operational difficulties, but fleet is operating normally - Sovcomflot

MOSCOW. March 18 (Interfax) - The inclusion of Sovcomflot in the US sanctions SDN List has created operational difficulties, but the company is working to overcome them, a Sovcomflot report says.

"In 2024, the United States introduced blocking sanctions against PJSC Sovcomflot, 15 of its vessels and some subsidiaries. New sanctions are creating additional operational difficulties for doing business. The company is working to overcome current challenges and continues to operate the fleet as usual," the report says.

"The company's activities are subject to the influence of geopolitical factors and illegally imposed sanctions from unfriendly countries. The company is systematically working to overcome emerging challenges," Sovcomflot said in a press release.

The United States added Sovcomflot and oil tankers flying the flags of Panama and Gabon, which, according to OFAC, are associated with Sovcomflot, to the SDN List on February 23 of this year. OFAC also issued a license permitting operations with Sovcomflot vessels through April 8, 2024 if the vessels were loaded with cargo before February 23.

The US initially imposed sanctions against Sovcomflot in February 2022, including the company in the Non-SDN Menu-Based Sanctions List, meaning the company was banned from attracting debt and equity financing from American investors. The United States tightened sanctions restrictions in February 2024 by moving Sovcomflot to the SDN List.

Sovcomflot specializes in the transportation of liquefied gas, oil and petroleum products; it is one of the world's largest tanker fleet operators. Sovcomflot's free float is 15.6%; the quasi-treasury package is about 1.6%. The Russian Federation owns 82.8%.

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