Sovcomflot finds fleet insurance cover

June 22, 2022 TMSA 3

The Russian owner has been squeezed by western sanctions against Russia and its assets in retaliation for the war in Ukraine. Some companies have ceased Russian operations, whether for moral reasons or due to the spreading sanctions.

Classification societies and insurers were among those to turn their backs on Russian ships as it became difficult or illegal to continue their business.

Reuters sources said that another Russian state-backed entity, Russian National Reinsurance Company, had picked up much of the post-sanctions insurance business, including Sovcomflot’s fleet.

On the classification front, the International Association of Classification Societies (IACS) withdrew the membership of the Russian Maritime Register of Shipping (RMRS) in March. Classification by an IACS member class society is often a stipulation in maritime contracts, including insurance.

The IACS transfer of class register shows a mass transfer of Sovcomflot Vessels from class societies LR, BV, DNV, and ABS to the Indian Register of Shipping.