Sovcomflot sells tankers amid sanctions - WSJ

MOSCOW. May 13 (Interfax) - Sovcomflot has sold "around a dozen vessels" to buyers in Asia and the Middle East in order to repay loans to Western banks amid sanctions, The Wall Street Journal reported, citing sources familiar with the situation.

According to a WSJ source, Sovcomflot has sold five tankers to Koban Shipping based in Dubai and four gas carriers to Singapore's Eastern Pacific Shipping, which paid $700 million to the bank that had become the owner of the vessels.

Sovcomflot is also in talks with companies, including China Merchants Group, to sell other tankers, according to sources. The ultimate beneficial owners of a number of vessels being sold could be unknown for a period of some time, the sources said.

According to ship brokers, some of the vessels sold have undergone name changes and are being registered under various flags in order to obtain insurance.

Sovcomflot said earlier that "older tonnage is being offered for sale on the market, as well as vessels whose operation does not seem viable due to the restrictions imposed on the Russian merchant fleet."

Sovcomflot had 134 of its own and hired vessels according to data from the end of February, the company's website says. The list included 108 tankers of various classes, 14 gas carriers, and 11 specialized vessels.