Sanctions drive Russia's largest shipping company to heavy losses

The Russian shipping company Sovcomflot, the largest maritime operator in Russia, reported a net loss of US$393 million in the first quarter of 2025.

Source: Reuters 

Details: The company attributes the financial downturn to Western sanctions, which have disrupted fleet management, caused some vessels to stand idle and significantly reduced profits.

Sanctions imposed by the US and EU in 2024 aimed to curb Russia’s oil export revenues, which fund the war in Ukraine.

In January 2025, additional Sovcomflot vessels were added to the sanctions list and a US licence previously allowing some vessels to operate was revoked.

As a result, the company’s revenue for the first quarter fell by 49% compared to the same period last year, reaching US$278.5 million. EBITDA dropped 69% to US$105 million.

Sovcomflot’s press service stated that the sanctions created "additional commercial and operational difficulties in operating the fleet."

Background: 

• In 2024, Sovcomflot’s transportation volumes decreased by 16% to 63 million tonnes.
• The company has warned that new restrictions this year will further pressure its operations.

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