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Thursday, March 28, 2024
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Sovcomflot News

28 Mar 2024

Asia Crude Imports Surge as China, India Snap Up Russian Oil

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Asia's imports of crude oil are expected to rise to the highest in 10 months as heavyweights China and India lifted arrivals from Russia, but impending maintenance schedules and rising prices mean such levels may not be sustained.The world's top importing region is forecast to see arrivals of 27.48 million barrels per day (bpd) in March, up from 26.70 million bpd in February and January's 27.18 million bpd, according to data compiled by LSEG Oil Research.The bulk of oil arriving in March was arranged before the current increase in prices…

20 Mar 2024

Reliance Refusing Sovcomflot Oil Shipments

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India's Reliance Industries, operator of the world's biggest refining complex, will not buy Russian oil loaded on tankers operated by shipping company Sovcomflot (SCF) after recent U.S. sanctions, according to two sources familiar with the matter.The development adds to oil export problems for Russia as its oil firms may face difficulties finding ships to sell surplus oil after recent Ukrainian drone attacks on the state's refineries. Russian companies are already struggling to collect payments for oil exports due to banking restrictions.The U.S.

13 Mar 2024

Second Russian Tanker, Hit by Sanctions, Docks in China

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Russian tanker Krymsk, hit by sanctions, docked on Wednesday at the Chinese port of Dongying in eastern Shandong province, home of independent refiners, to discharge 700,000 barrels of Russian Sokol crude, LSEG and Kpler shipping data showed.This is the second Russian oil tanker, hit by sanctions, to dock at Chinese ports this month. Last week, tanker Liteyny Prospect discharged its 700,000-barrel Sokol crude cargo at the Chinese port of Huanghua near Cangzhou city in Hebei province.The Dongying port authority declined comment when contacted by Reuters.

07 Mar 2024

Tanker Liteyny Prospect, Hit by Sanctions, Docks in China to Offload Russian Oil

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The Russian tanker Liteyny Prospect, hit by sanctions, has docked at the Chinese port of Huanghua to discharge its 700,000-barrel Russian Sokol crude cargo, two sources familiar with the matter said, clearing part of a backlog of cargoes disrupted by sanctions on Moscow's oil trade.The tanker is one of six ships carrying Sokol crude, which India has not been able to import due to payment issues. The six ships had been sailing to China but five of them are floating at sea early this week, shipping data showed, following fresh U.S.

06 Mar 2024

Russia Oil Fleet Shifts Away from Liberia, Marshall Island Flags Amid US Sanctions Crackdown

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Dozens of oil tankers used by Russia have stopped sailing under the Liberian and Marshall Islands flags in recent weeks after the United States ramped up sanctions enforcement on ships linked to those registries, according to shipping data and interviews with industry and government officials.The shift reflects the close relationship between the U.S. and the flag administration companies of Liberia and the Marshall Islands, which are headquartered not in their home countries, but in Virginia, just miles from Washington D.C. and within the jurisdiction of U.S.

23 Feb 2024

US Imposes Sanctions on Russia's Leading Tanker Group Sovcomflot

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The U.S. Treasury said on Fridayit has imposed sanctions on Russia's leading tanker group Sovcomflot FLOT.MM, as Washington seeks to reduce Russia's revenues from oil sales that it can use to support its invasion of Ukraine.The Treasury Department's Office of Foreign Asset Control also designated 14 crude oil tankers vessels as property in which Sovcomflot has an interest. It issued a general license allowing the offloading of crude oil, or other cargoes, from the vessels for 45 days."Sovcomflot as a whole…

16 Jan 2024

Another Ship Hit in the Red Sea

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Disruptions to Red Sea shipping caused by Houthi attacks will push up prices of consumer goods, an executive from port and freight operator DP World said on Tuesday as a missile struck another vessel in the region.The Iran-allied Houthi militia has threatened to expand its attacks to include U.S. ships in response to American and British strikes on its sites in Yemen.Attacks by the Houthis on ships in the region since November have impacted companies and alarmed major powers - an escalation of Israel's more than three-month-old war with Palestinian Hamas militants in Gaza.

16 Jan 2024

Sovcomflot Considering Alternative Shipping Routes in Case of Red Sea Escalation

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Russia's leading tanker group Sovcomflot is considering alternative shipping routes in case of further escalation of the crisis in the Red Sea, the TASS news agency reported on Tuesday.The United States and Britain launched a series of strikes on Yemen last week aimed at the Iran-backed Houthi militia, whose attacks on international shipping have disrupted one of the world's most important trade routes since December.According to British maritime security firm Ambrey, last week…

22 Dec 2023

Lack of Arctic Tankers Puts Russia's LNG Development Dreams on Ice

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Russia is hoping its shipments of liquefied natural gas (LNG) will offset a sharp fall in pipeline gas exports to Europe, but a shortage of gas tankers and sanctions hold back its plans, analysts and industry sources said.Russia wants to boost its share of the LNG market to 20% by 2030 from 8% now, but a force majeure declaration by top producer Novatek over LNG supplies from its future Arctic LNG 2 project due to sanctions shows the hurdles it faces.Novatek's announcement comes after the United States last month imposed sanctions on Arctic LNG 2…

04 Oct 2023

Russia's Sovcomflot Transfers Ships to New Management Firm to Boost Trade

Russia's leading tanker group Sovcomflot has transferred dozens of ships into a new Dubai based management company aiming to boost trade through this entity amid growing pressure from financial restrictions, according to maritime industry data and shipping industry sources.State-owned Sovcomflot (SCF) is subject to sanctions and other restrictions by the UK and the European Union, while Washington has restricted its financial activities. Sovcomflot - whose fleet in the region of 80 vessels including crude, oil products and liquefied natural gas tankers - has had to deal with these capital restrictions over the past year. It has also had to rebase its overseas operations from Cyprus to Dubai.Since July…

09 Feb 2023

Oil Shipping and Refining Firms Benefit from Western Sanctions on Russia

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Western sanctions on Russia have significantly reduced state oil revenues and diverted tens of billions of dollars towards shipping and refining firms, some with Russian connections.Most of the winners from the sanctions are based in China, India, Greece and the United Arab Emirates, at least 20 trading and banking sources said. A handful are partly owned by Russian companies.None of the firms is breaching sanctions, the sources told Reuters, but they have benefited from measures…

17 Oct 2022

Rosneft Moves Into Tanker Chartering as EU Ban Looms

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Russia's biggest oil exporter Rosneft has expanded its tanker chartering business to ease oil shipments for buyers amid looming Western sanctions on insurance of Russian oil shipments, three sources familiar with the matter said.Previously, state-controlled Rosneft, which produces more than 40% of Russian oil, would sell its oil at the port of loading, meaning the buyer would have to find tankers and handle freight and insurance costs for the voyage.But with new, tighter Western sanctions looming…

17 Oct 2022

Exxon's Russian Oil Output Collapsed after Rejecting Local Tanker Insurance

Credit: Rosneft

Oil output at the giant Exxon-led Sakhalin-1 Russian Pacific project collapsed following the U.S. major's refusal to accept local insurance for tankers after Western insurers pulled out due to sanctions, several industry sources told Reuters. Western insurers withdrew cover from tankers operated by state-run Sovcomflot, Russia's biggest shipping group, which was sanctioned following Moscow's invasion of Ukraine. "Exxon has refused to take Sovcomflot's tankers," one industry source said.

21 Jul 2022

Shrugging off Russia Maritime Business Loss, Cyprus Targets Asia Shipping

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Cyprus has already overcome the loss of Russian maritime trade due to European sanctions and the Mediterranean shipping hub is chasing business expansion in Japan and elsewhere in Asia as it looks to grow its flag, a senior government official said.Cyprus, together with Greece and Malta, which have the largest shipping fleets in the 27 member EU and host large ship-management centers, have been the most vocal countries in the bloc seeking to limit the extent of shipping restrictions imposed on Russia after its February invasion of Ukraine."Contrary to reports…

15 Jul 2022

Russian Fuel Oil Cargo Arrives in Cuba as the Island Ramps Up Imports

A tanker carrying Russian fuel oil arrived in Cuba on Thursday, bringing supplies for the Caribbean nation's sputtering power plants and giving Russia an outlet for products shunned by the West.The United States and Canada have imposed sanctions on Russian oil and fuel over its invasion of Ukraine, while Europe and the United Kingdom are moving toward an end-of-year embargo on Russian crude imports.The Liberia-flagged Aframax tanker Suvorovsky Prospect arrived in Cuba's Matanzas port carrying about 700,000 barrels of fuel oil, loaded at Russia's Ust-Luga port. The cargo is worth some $70 million at market prices.The vessel is owned by a unit of top Russian shipping conglomerate Sovcomflot, according to maritime database Equasis. Sovcomflot is under British, Canadian and U.S.

23 Jun 2022

Russian Oil Tankers Get India Safety Cover Via Dubai Company

India is providing safety certification for dozens of ships managed by a subsidiary of top Russian shipping group Sovcomflot, official data showed, enabling oil exports to India and elsewhere after Western certifiers withdrew their services due to global sanctions against Moscow.Certification by the Indian Register of Shipping (IRClass), one of the world's top classification companies, provides a final link in the paperwork chain - after insurance coverage - needed to keep state-owned Sovcomflot's tanker fleet afloat and delivering Russian crude oil to overseas markets.Data compiled from the IRClass website shows that it has certified more than 80 ships managed by SCF Management Services (Dubai) Ltd…

20 Jun 2022

Sovcomflot Fleet Fully Covered by Russian Insurers, CEO Says

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Russia's state-run Sovcomflot has insured all its cargo ships with Russian insurers and the cover meets international rules, the chief executive said, after Western insurers withdrew cover.Western insurers halted insurance cover for Russia's biggest shipping group when Sovcomflot was hit by sanctions after Moscow sent troops across the border into Ukraine.Sources told Reuters this month that state-controlled Russian National Reinsurance Company had become the main reinsurer of Russian ships…

27 May 2022

Abu Dhabi's Al Seer Marine Buys LPG Tanker Duo for $67M to Meet Growing Demand

Credit: Andrey Vlasenko

Abu Dhabi's Al Seer Marine, a subsidiary of International Holding Company (IHC), has said it has acquired two vessels, valued at a combined AED 246 million ($66,97 million), to meet the "rapidly growing demand for transportation of liquified petroleum gas (LPG)."Al Seer Marine has purchased LPG tankers, MT Alcor and MT Alkaid, each with a capacity of 20,700 cubic meters. The vessels are expected to provide an internal rate of return (IRR) of 25%, Al Seer Marine said. The company plans to buy up to 15 ships in 2022.

06 May 2022

Russia's Sovcomflot Plans to Sell Part of Its Fleet as It Grapples with Sanctions

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Russia's leading shipping company Sovcomflot plans to sell part of its fleet on Friday, as it grapples with Western sanctions and seeks to repay outstanding loans.Sovcomflot has faced growing challenges in concluding charters as ports, end purchasers, marine insurers, and other freight companies pull back from Russian business amid sanctions imposed in response to Moscow's invasion of Ukraine. Lloyds List shipping newspaper reported, citing unnamed sources, that up to a third…

29 Apr 2022

Sanctions Tighten Screws on Russia's Sovcomflot as Ship Insurers Cut Cover

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Western ship insurers are terminating cover for Russia's leading shipping company Sovcomflot as multiple sanctions start to bite, companies involved say, adding to the growing challenges for the state-owned company and Moscow's efforts to export oil and gas.Russia's maritime sector is seeing the wind down of multiple services, including ship certification by leading foreign providers - vital for accessing ports and securing insurance - shipping companies pulling out and ship engine…

26 Apr 2022

India's ONGC Struggling to Move Russian Oil

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India's Oil and Natural Gas Corp (ONGC) is struggling to find a vessel to ship 700,000 barrels of crude from Russia's Far East, in a growing sign that complex trades involving one of Moscow's biggest partners are being interrupted by Western sanctions, sources say.Several Indian companies including ONGC have stakes in Russian oil and gas assets, and India has been buying more Russian crude since Moscow invaded Ukraine, snapping up the popular Urals crude grade, while other buyers…

01 Apr 2022

Bunker Suppliers Stop Serving Russian Vessels in the Med

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Marine fuel sellers have stopped serving vessels flying the Russian flag at major European hubs including Spain and Malta in another blow to Moscow's exports, five industry sources with knowledge of the matter told Reuters.Losing access to refueling points in the Mediterranean Sea poses major logistical problems for Russian oil tankers going from Baltic ports to Asia and also creates safety concerns over potentially being stuck at sea with flammable cargoes, shipping sources say.Russia…

31 Mar 2022

UK Tightens Sanctions Targeting Russian Oligarchs' Yachts

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Britain put in place new legal powers on Wednesday to prohibit maintenance on aircraft and ships belonging to specific sanctioned Russian oligarchs or their businesses.The government is acting in concert with Western allies to try to cripple the Russian economy as punishment for Moscow's invasion of Ukraine. It has targeted Russia's access to the international financial system, industries like shipping and defense, and wealthy elites close to President Vladimir Putin.Britain said…