Sovcomflot Signs Shipbuilding Cooperation Deal

Russian shipping firm; Sovcomflot has entered into a cooperation deal with the Bank for Development and Foreign Economic Affairs (Vnesheconombank) and VEB Leasing related to shipbuilding projects.

Under the trilateral agreement, which was signed on September 12, 2018, the parties would jointly participate in the implementation of shipbuilding projects at Russian shipyards and import substitution projects.

The deal provides for the possibility of financial support for the implementation of innovative and advanced technologies, as well as improvements to the energy efficiency of vessels built at domestic shipyards.

The companies involved have previously cooperated in the construction of two Arctic shuttle tankers, Mikhail Ulyanov and Kirill Lavrov, built to order for Sovcomflot Group at the Admiralty Shipyards in St. Petersburg.

Sovcomflot separately signed a cooperation agreement with the Russian Ministry of Natural Resources on ensuring environmental safety and preserving the natural environment of the Russian Arctic zone.

The agreement provides for the development of proposals for the implementation of comprehensive measures to stimulate the use of new environmentally friendly types of marine fuel, primarily LNG, the development of other “green technologies,” as well as information exchange and joint activities to prevent substandard navigation in the Arctic seas.

“Strengthening the interaction between business and government agencies to protect the fragile environment of the Arctic is becoming critically important amidst increasing traffic along the Northern Sea Route,” Sergey Frank, President and CEO of Sovcomflot, said.

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