New sanctions against Sovcomflot's vessels create additional operational complications; work to minimize effect of restrictions ongoing - company

MOSCOW. Jan 14 (Interfax) - The introduction of the latest sanctions against Sovcomflot's vessels creates additional operational complications, Russia's largest shipping company said.

"Sovcomflot is continuing the systematic work to minimize the negative effect of sanctions on its activities. Meantime, the company, as before, will invariably adhere to high standards of safety and quality of maritime operations, complying with all applicable laws and requirements," the company said.

The U.S. Treasury Department last Friday announced sanctions against 69 Sovcomflot vessels, including 54 oil and petroleum product tankers and four liquefied natural gas tankers.

The U.S. initially imposed sanctions against Sovcomflot in February 2022, placing the shipping company on the Non-SDN Menu-Based Sanctions List, meaning that Sovcomflot is prohibited from raising debt and equity financing from U.S. investors. The U.S. tightened the sanctions restrictions in February 2024 by moving Sovcomflot to the black list.

Sovcomflot has always observed and will continue to observe all international and national laws that are applicable to it, the company said. "The company's vessels have no relation to the 'shadow fleet'. Sanctions against Sovcomflot do not result from violations on the company's part and have no legal grounds. They are caused exclusively by the political interests of individual countries, including the U.S.," the company said.

A sanctions policy of this kind will inflict increasing damage on the global maritime merchant shipping system which was established and functioned over decades, the company said.

Sovcomflot specializes in the transportation of liquefied gas, oil and oil products, and is one of the world's largest tanker fleet operators. Sovcomflot's free float is 15.6%, the quasi-treasury stake is about 1.6%. Russia owns 82.8%.