Russia's largest shipping group forced to sell up to one-third of its ships to repay loans ahead of a Western sanctions deadline, report says

Russian shipping firm Sovcomflot is planning to sell up to one-third of its vessels to pay back loans before Western sanctions come into effect, according to Lloyd's List.

A senior industry official familiar with the deals told Lloyd's List that Sovcomflot has been in talks with clients in the Middle East and China about selling at least 40 of its 121 ships.

The European Union and the UK have imposed various sanctions against Russia. The shipping giant has until May 15 to repay all of its loans.

According to Lloyd's List, Sovcomflot put around a third of its vessels on the market.

All banks and charterers have until May 15 to actually end the contracts, which means Sovcomflot has a very short window to pay back the loans, and that is the only way it can do that.

The source said that Koban Shipping bought four of the eight ships that Sovcomflot had sold. Koban Shipping didn't respond to Insider's request for comment outside of normal working hours. The industry official told Lloyd's List that buyers in China were involved in several deals that are nearly completed.

Insider and Lloyd's List asked Sovcomflot about the ship sales.

The EU wants to ban Russian oil imports and phase out crude within six months.