Sovcomflot resolves issue of vessel insurance, no restrictions on entry to other countries' ports - CEO

ST. PETERSBURG. June 20 (Interfax) - Sovcomflot has managed to resolve problems with vessel insurance and all its ships are now insured as required by all existing international conventions, the CEO of Russia's largest shipping company, Igor Tonkovidov said.

"After the imposition of restrictions the company faced certain difficulties and some ports in foreign countries became inaccessible to our vessels - in Canada, the United Kingdom, Australia, the United States and parts of the European Union. Banks demanded early repayment of loans and mutual insurance clubs warned about the revocation of insurance coverage," Tonkovidov told reporters at a briefing at the St. Petersburg International Economic Forum.

"In the course of March and April we managed to resolve the issue of settlements on credit encumbrances without the threat of commercial arrest in foreign ports, thus ensuring the operation of the whole rest of the fleet. In terms of operations, the company has been on an even keel since mid-May," Tonkovidov said.

"The company's vessels are insured with Russian companies with an amount of insurance coverage that meets the requirements of international conventions. Technically we comply with all rules of international trade. All insurance certificates are on board every vessel, we don't have any restrictions for entry into the ports of other countries. Virtually the whole fleet of the company is fully engaged in shipping hydrocarbons, vessels are being unloaded in various regions of the world," Tonkovidov said.

"Without insurance coverage, the group's vessels were not allowed to enter terminals," he said.

Sovcomflot specializes in shipping liquefied natural gas, crude oil and oil products and is one of the largest tanker fleet operators in the world. The company has a fleet of 111 owned and chartered vessels, according to the latest information. The Russian state owns 82.8% of Sovcomflot, the free float is 15.6% and treasury shares amount to about 1.6%.