Sanctions hitting Sovcomflot's revenues, forcing partial fleet idling, but liquidity reserves are sufficient - company

MOSCOW. May 23 (Interfax) - The tightening of Western sanctions against Sovcomflot and its vessels has created additional commercial and operational challenges, the company said in its financial statements for Q1 2025.

The increased sanctions pressure "has led to declining revenue levels and the idling of some sanctioned vessels," Sovcomflot said. "Management is taking measures to minimize operational and financial losses associated with the new restrictions," while deeming the sanctions themselves "unlawful and lacking legal basis," it said.

In a press release accompanying its quarterly results, Sovcomflot described the sanctions imposed during the reporting period as "unprecedented in scale."

"Despite these developments, the company's business model demonstrates strong resilience due to its portfolio of long-term contracts and diversified fleet structure. Sufficient liquidity reserves and a balanced capital structure also enable the company to maintain stable financial standing. Sovcomflot continues systemic efforts to mitigate the negative impact of sanctions on its operations," it said.