Russian tanker management company Sovcomflot is set to close its Cyprus-based payment center as a result of sanctions imposed on Russia for its invasion of Ukraine, according to Bloomberg, citing knowledgeable individuals.
The office could close by May 15 and Sovcomflot could relocate to an Asian country, said one of those who asked not to be named, as the decision has not yet been announced. The office in Cyprus started operating in 2005 and was used, among other things, for accounting and financial management issues.
Sovcomflot manages about 110 tankers, according to Clarksons Research Services. Its fleet consists of smaller ships carrying oil, as well as ships that can carry more than 2 million barrels of crude oil.
The company has 52 Aframaxes-type vessels, making it the largest owner of such vessels in the world, according to Clarksons. Medium-sized ships are usually active in the Mediterranean, the North Sea, the Black Sea and the Baltic region.
Sovcomflot will be the second major Russian company to close in Cyprus. RCB Bank ceased banking operations in late March after Russia’s VTB Bank sold its stake amid EU and US sanctions related to the war in Ukraine.
Source: Capital
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