Russia’s Fesco Transportation Group said it has begun steps to pull two ships from leases with a state-controlled financier that the US has slapped with sanctions.
TradeWinds reporters across the globe are covering the shipping implications on the Russia-Ukraine crisis.
The move comes after the administration of US President Joe Biden blacklisted two Fesco-operated vessels because they are owned by OOO PSB Lizing, a lease financier better known in English as PSB Leasing.
The 822-teu Fesco Magadan and Fesco Moneron (both built 2003) were among five PSB-owned ships targetted by Washington in its first round of sanctions against Russia after its military operations began in Ukraine.
In response to questions from TradeWinds about the blacklisted vessels, Moscow-based Fesco pointed to a company statement saying that the ships were sanctioned because they are on the balance sheet of their lessor.
“Fesco has already started procedures of withdrawal of vessels from leasing and termination of relations with PSB Leasing LLC with the purpose of further exclusion of motor ships from the sanctions list,” the company said.
The company said the Magadan and Moneron will continue to operate on their coastal service linking the ports of Vladivostok, Vostochny and Magaadan on Russia’s Pacific coast.
The US Treasury Department said PSB was named in sanctions because of its role in military financing and its role in shielding major commercial Russian banks from sanctions.
Fesco, which operates the vessels far from the conflict in Ukraine, has not been accused of involvement in either of those activities.
“Motor ships Fesco Magadan and Fesco Moneron appeared on the sanctions list of Treasury Department of the US solely due to the status of their lessor — PSB Leasing LLC. Accordingly, US sanctions have nothing to do with activities of the group,” Fesco said.
A major player in the Russian Far East, Fesco describes itself as one of the country’s leading transportation and logistics companies, with a fleet of 13 container ships, seven bulkers and a multipurpose ship.
The company also controls the port of Vladivostok, the biggest port on Russia’s Pacific coast and a major train and rolling stock fleet.
