Sovcomflot has left independent tanker owners’ association Intertanko and the Society of International Gas Tanker and Terminal Operators (Sigtto) following international sanctions against the company.
Intertanko confirmed the decision to part ways was taken at its council meeting in May without offering further comment.
The move comes weeks after Sovcomflot was directly named as a sanctioned entity by the UK and European Union following Russia’s invasion of Ukraine.
The departure of one of the industry’s leading owners, and its fleet of more than 100 tankers, will come as a blow to the Intertanko membership, which represents 184 tanker owners controlling 4,100 vessels.
The London-based association represents tanker owner interests in the main regulatory forums, such as the International Maritime Organization and the Europen Union, as well as being a leading stakeholder in promoting safety in the industry.
There is nothing in the departure from Intertanko that is likely to directly affect Sovcomflot’s ability to trade internationally.
Sigtto also confirmed that Sovcomflot company SCF is no longer a member. In a statement, the liquid gas association said: “In accordance with the applicable sanctions requirements, the Sigtto board suspended SCF’s membership of the society at their recent London meeting. SCF is a highly-valued member of the gas shipping industry, and Sigtto hopes that if and when political circumstances permit the company can be re-instated to Sigtto.”
Sigtto is also mainly a technical and safety-related body representing the liquid gas maritime transportation industry.
Not all shipping associations have moved to remove Russian members.
The Russian Chamber of Shipping remains a member of the International Chamber of Shipping (ICS) with Albert Vygovskii, chief executive of Russian bulk carrier operator Pola Rise, sitting on its executive board.
The ICS represents the collective interests of shipowner associations around the world.
International trade
There have been other moves that have been more impactful on Sovcomflot’s ability to trade its ships internationally.
Sovcomflot’s ships have been declassed by International Association of Classification Societies (IACS) members DNV, Lloyd’s Register, Bureau Veritas and ABS.
The Russian Register of Shipping, which also classes Sovcomflot’s ships, was thrown out of the IACS shortly after the outbreak of hostilities in Ukraine.
Most of the affected vessels transferred their class to the Indian Register of Shipping, which is also an IACS member, but not directly subject to international sanctions.
Members of the International Group of P&I Clubs have also withdrawn protection and indemnity cover from Sovcomflot’s tankers.
However, it has reportedly been able to replace the cover mainly through the Russian National Reinsurance Company. Sovcomflot recently said it now meets all the regulatory requirements to trade internationally.
The company has also turned to alternative trades outside Europe in shipping Russian oil to Asia.
But sanctions are starting to impact its business. This week, it announced it had missed two monthly coupon deadlines to Irish bondholders in April and June after its agent refused to handle the money.
In a statement, Sovcomflot said: “Due to the EU and UK sanctions imposed on the issuer and guarantor in March this year, the proper discharge of obligations under the notes is technically impracticable, in particular, due to the refusal of the paying agent to accept the payment and pay the coupon.”
Sovcomflot was contacted for comment.
