(Reuters) – Russia’s leading tanker group Sovcomflot said on Friday that Western sanctions on Russian oil tankers were hurting its financial performance, as it reported a drop in revenue and core profit.
The United States imposed sanctions on Sovcomflot in February, as part of Washington’s efforts to reduce the amount of money Russia receives from the sale of oil that it can use to finance its war in Ukraine.
Sovcomflot reported a 22.2% year-on-year drop in nine-month revenue to $1.22 billion and said earnings before interest, tax, depreciation and amortization fell 31.5% to $861 million.
“The introduction of new sanctions was a factor during the reporting period,” Sovcomflot said in a statement.
The Group of Seven and its allies have introduced a $60-a-barrel price for Russian oil, but enforcement has been difficult. As a result, tanks, including Sovcomflot ships, were a particular target of punishment.
Sovcomflot CEO Igor Tonkovidov said in June that sanctions and changing market conditions could reduce the group’s revenue this year. In April, he said the sanctions affect 8% of the tankers involved in the export of Russian oil.
More than 60 percent of Russia’s seaborne oil exports go to India.
“The company continues to work systematically to overcome the challenges that arise,” said Sovcomflot.
(Reporting by Gleb Stolyarov; Editing by Alexander Marrow and Jonathan Oatis)
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