Russia's largest shipping company ended the quarter with a loss of $393 million due to sanctions
Photo: Sovkomflot

In the first quarter of 2025, Russia's largest shipping company Sovcomflot suffered a net loss of $393 million. Reuters reports this.

The company blamed its downfall on Western sanctions, which significantly complicated the operation of the fleet, reduced profits, and led to the downtime of individual vessels that fell under restrictions.

Last year, the US and EU imposed sanctions on Sovcomflot and some of its vessels to reduce Russia's oil revenues, which finance the war in Ukraine.

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In January 2025, the US added new Sovcomflot vessels to the list of sanctioned assets and revoked the license that previously allowed part of the fleet to operate despite sanctions.

As a result, the company's revenue for the first quarter decreased by 49% compared to the same period last year – to $278.5 million.

The Russian company's EBITDA (earnings before interest, taxes, depreciation and amortization) fell by 69% to $105 million.

"The tightening of Western sanctions has complicated fleet management and led to a decrease in income and downtime of some vessels that fell under sanctions," the press service of Sovcomflot noted.

The company also acknowledged that the sanctions had caused "unprecedented difficulties in commercial and operational activities."

  • In January, the Financial Times reported that European shipbuilders, including Damen in France and Fayard in Denmark, were repairing Russian ice-class Arc7 tankers that carry liquefied natural gas (LNG) from the Yamal plant.
  • On March 11, Bloomberg reported that U.S. sanctions against Russia’s shadow fleet were showing signs of easing. Several blacklisted vessels have loaded for the first time in more than a year, allowing Russia to increase its crude oil supplies.