Sovcomflot unveils loss of Cyprus crisis

By Finance

Sovcomflot is the biggest shipping company in Russia and has announced that the bank crisis in Cyprus has blocked $25.8M at Cyprus Popular Bank (Laiki). It is known that few days before the freeze Fiona Trust & Holding, a subsidiary of the tanker group took the money from their bank account (more than €6M ($7.86M)).
Sovcomflot informed in 2012 that the risk of losing a lot of money in feature is real(money in the Cyprus Popular Bank (Laiki)).
The release of a financial report warns for the large amount of funds(in Laiki) that will be lost. But the company announced that this amount of money will not stop its ability to operate.
This information reveals that Sovcomflot is postponing money transfer of part of the sums awarded by the UK High Court to former CEO Dmitry Skarga and the former CEO of Novoship, Tagir Izmaylov. The delay is with the intention to give Sovcomflot’s attorneys time to seek an overturn of judgments by that court and the UK Appeal Court judgements at the UK Supreme Court, which is to rule shortly on the group’s application. If dismissed, a claim for $180M already pending against Sovcomflot from ex chartering partner Yury Nikitin will be started again in the High Court. The balance sheet of the Russian company gives information that the freight and hire revenues reached $1.443Bn in 2012, from $1.439Bn in 2010, while operating profits fell 21% to $152.6M and net income fell 38% to $33.2M. In the same time, Russia’s government disclosed that Sovcomflot’s privatization, that had to be 2013, appears likely to be postponed once more.