Sanctions Cut Russia's Sovcomflot 2024 Transportation Volumes

Russia's leading tanker group Sovcomflot's saw transportation volumes drop around 16% to 63 million metric tons last year compared to 2023, Russian news agency Interfax reported on Friday, citing the group's CEO Igor Tonkovidov as saying.

The United States and the European Union imposed sanctions on state-controlled Sovcomflot and its fleet in 2024 in an effort to reduce Russia's revenue from oil sales that it can use to finance its war in Ukraine. The company's net profit dropped by 55% to $424 million last year.

Sovcomflot hopes that the transportation volume of oil, liquefied natural gas (LNG) and petroleum products will stay at the same level this year, Tonkovidov added. Transportation volumes in 2023 stood at 75 million tons.

The U.S. added more of Sovcomflot's vessels to its sanctions list this year, restrictions that the company warned would exert increased operational pressure.

(Reuters)