Sovcomflot

In 1973 the Government of the USSR decreed the formation of a special shipping corporation, separated from the regular state-owned marine fleet, that could use a long-term bare boat charter scheme for purchasing new and used foreign-built vessels. In 1976 the Ministry of Merchant Marine instituted a special fund and the newly formed corporation used it to acquire two 40,000 DWT, dry cargo transports – Sovfracht and Sovinflot.

In 1988 these operations were reorganized as the Sovcomflot Joint-Stock Company (SCF), a then one-of-a-kind state-owned corporation with special authorization by the USSR Council of Ministers. By 1990 its assets reached a gross tonnage carrying capacity of 1,800,000 DWT. A further reorganization in June 1995 confirmed the special status of Sovcomflot as a state-owned business.

In June 2007 President of Russia Vladimir Putin authorized the merger of Sovcomflot and Novoship; the state 'invested' its 50.34% share in Novoship in Sovcomflot capital.[3] The legal procedures were completed in early 2008 and in January 2008 Sovcomflot offered a stock buyout to the remaining minority shareholders of Novoship.[4] The integration of Novoship assets into Sovcomflot operations continues as of August 2008 (fleet management and sales were unified in July 2008).[5]

In August 2017 the Christophe de Margerie, a tanker owned by Sovcomflot, became the first cargo ship to complete the so-called Northern Sea Route, completing a journey from Hammerfest in Norway to Boryeong in South Korea in the record time of 22 days.[6]

On March 24, 2022, the United Kingdom imposed sanctions on Sovcomflot in response to the 2022 Russian invasion of Ukraine. Sovcomflot has also been sanctioned by Canada and the United States has prohibited Sovcomflot from raising funds on American capital markets.[7] The American sanctions made it very difficult for Sovcomflot to get insurance for its vessels and cargoes. This has led many Asian customers to cancel orders for Sokol, one of three main export-grade crude oils sold by Russia.[8]

Moscow Stars oil tanker at Fawley Refinery

The company's fleet (owned and chartered) specialises in hydrocarbon transportation from regions with challenging icy conditions and includes 145 vessels with a combined deadweight of 12,674,917 tonnes and an average age of 9 years. More than 80 vessels have an ice class.

Sovcomflot operates vessels in the segments that are in highest demand by the leading Russian and international oil and gas companies. The company services large-scale energy projects in Russia and abroad, including Yamal LNG, Sakhalin-1, Sakhalin-2, Prirazlomnoye, Novy Port, Varandey, Tangguh. The company is one of the biggest customers of civil shipbuilding in the Russian Federation.

The company is registered in Saint-Petersburg and has representative offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol and Dubai.

Sovcomflot board of directors is usually headed by executives from the Presidential Administration of Russia. In July 2007 Igor Shuvalov, long-time chairman of the board and an aide to Vladimir Putin, was replaced by Sergey Naryshkin, chief of staff of Presidential Administration. Other directors are: Andrey Kostin (Vneshtorgbank), Yury Medvedev, Alexander Misharin, Gleb Nikitin, Charles E. Ryan (of Deutsche Bank), Aleksey Sokolov, Elena Titova (Morgan Stanley), Alexander Tikhonov, Sergey Frank (Chief Executive Officer).

Sergey Frank controls the operations as CEO since October 2004. The Management Board also includes Sergey Burima (operations), Nicholas Fairfax (London operations), Andrey Khlunev (accounting), Nikolay Kolesnikov (finance), Aleksandr Kurtynin (audit), Callum Ludgate (charter and gas), Vladimir Mednikov (law), Sergey Popravko (Cyprus operations).[9]

• Sovtorgflot

• Official website

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