🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Russian court seizes four Danish-owned tugboats in Sakhalin

Published 10/05/2023, 09:39
Updated 10/05/2023, 10:51
© Reuters.
ENRY
-

MOSCOW/COPENHAGEN (Reuters) -A Russian court on the Pacific island of Sakhalin has ordered the seizure of four tugboats belonging to Denmark's Svitzer

operator at the request of a Russian energy company.

Moscow has been seizing the assets of some Western companies which have left the country or are scaling back their business there in response to the conflict in Ukraine and Western sanctions.

A court ruling dated April 24 said it had ordered the tugboats seized in response to a request by Sakhalin Energy, a new Russian legal entity which oversees the production of oil and liquefied natural gas on the island.

The document said Svitzer Sakhalin had written to the Russian company on April 19 confirming plans to suspend a contract for use of the tugboats.

It said the Danish group , the world's biggest tugboat operator and a unit of shipping and oil group A.P. Moller-Maersk, had asked for the boats to be moved out of Russian waters and reflagged.

Maersk said the company decided to exit Russia completely in March 2022 and it has had an ongoing divestment process of its towage activities, such as four tugs owned by Svitzer operating on a long-term contract in Sakhalin.

"We have now taken steps to terminate the agreement where an entity of Svitzer in the EU has bare-boat chartered the tugboats to the Russian entity of Svitzer, meaning that Svitzer's entity in Russia no longer will be able to provide services," it said in emailed comments.

This was communicated to the customer and local authorities on April 17, it added.

According to Maersk, after the court ruling, all Svitzer's employees in Russia have resigned and Svitzer was no longer operating the four tugs.

"We believe the situation regarding the tugs is untenable and efforts to resolve the matter are ongoing."

The vessels' seizure would remain in place at least until a May 18 deadline for Sakhalin Energy to file a lawsuit challenging the contract suspension by Svitzer, according to the court's papers.

Russian daily Kommersant reported first about the seizures earlier on Wednesday. Sakhalin Energy did not respond to requests for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.