Turkish tanker owner Palmali is profiting from Ukrainian cargo contracts after a torrid few years.
And the Mubariz Mansimov-owned company is plotting newbuildings to capitalise on sunflower oil exports in the Black Sea.
Palmali has been dealing with a series of legal problems in the recent past, including the bankruptcy of its Russian subsidiary, court cases and the jailing of Mansimov over links to an outlawed Turkish political organisation, which he denied.
Mansimov has told Reuters his Istanbul-based operation has become the top carrier for Ukraine’s sunflower oil and plans to expand further in this business.
The Azerbaijan-born businessman said Palmali will order 10 15,000-dwt combination carriers next year to transport wet and dry cargoes.
“That way we will be able to deliver Ukrainian oil directly to Asia and ship palm oil back to Turkey or Ukraine on the way back,” Mansimov said.
The group also plans to start commodities trading operations early in 2024.
Palmali has an exclusive contract with Ukrainian sunflower oil and grains trader Potoky for next year, adding volumes.
The shipowner aims to carry 90% of Ukraine’s sunflower oil exports from Danube ports.
It is shipping between 65% and 75% currently.
Mansimov, who chairs Palmali, believes high transport costs have led some farmers and traders to focus on higher-value products such as sunflower oil instead of bulkier corn cargoes.
Palmali’s tankers also deliver diesel to Ukraine’s power plants.
Transparent operations
“We operate our ships transparently. Other operators turn their transponders off, we don’t. We notify the Russian side of our passage. Palmali shares both Russia’s and Ukraine’s shipping risks. It is an indispensable partner to both countries,” Mansimov told Reuters.
Trading operations will focus on European and Asian customers.
The group now operates about 30 ships, mostly chemical tankers of between 6,000 dwt and 20,000 dwt.
The chairman also said the company has stopped carrying crude oil and transports only non-sanctioned goods.
Palmali has been contacted for further details.
Earlier this year, a Maltese court awarded compensation to Russian lender Sberbank after “bad-faith” attempts by Palmali to avoid repaying loans.
Palmali was found to have tried to fraudulently bankrupt Maltese subsidiaries as the bank chased debts of $194m, Malta Today reported.
Palmali LLC, the bankrupt Russian subsidiary, saw its 46-ship fleet sold off to creditor Sberbank in 2020.
Mansimov himself was released from jail in Turkey in March 2021, after receiving a five-year suspended sentence relating to charges of links to an outlawed organisation headed by Fethullah Gulen, an opponent of Turkish President Recep Tayyip Erdogan.
Palmali has said there was no evidence to support the false claims, which Mansimov emphatically denied.
In 2015, Mansimov was listed by Forbes as being worth $1.3bn, with a portfolio including dairy products, media, resorts and planes, as well as tankers.
Clarksons lists the company as owning 14 vessels, all tankers apart from one multipurpose vessel.
