Russia Launches Sale of 7.8% Stake in Sovcomflot

Russia has begun the process of selling a 7.8% stake in state-owned shipping company Sovcomflot, seeking new sources of revenue to cover the country's budget deficit as the war in Ukraine continues. The Federal Agency for State Property Management, known as Rosimushchestvo, is the body in charge of carrying out the deal.

The agency launched a tender to select an advisor to organize the sale of the stake in the company, which is listed on the Moscow Exchange. According to Splash 247, applications close on November 17. Portal Portuario estimated the value of the deal at 15 billion rubles, about USD 183.78 million, while Maritime Executive put it at roughly $180 million and Splash 247 at $184 million.

The Russian state currently controls 82.8% of Sovcomflot, after placing a 17.2% stake in the company through an initial public offering carried out in 2020. With the new sale, the state's stake would be reduced to 75% plus one share, which would allow the Kremlin to retain control of what is considered Russia's largest shipping company.

Sources differ on the company's recent financial performance. Maritime Executive noted that Sovcomflot posted a net loss of about $650 million last year, though it returned to profitability in the first half of 2026 thanks to improved tanker rates. Splash 247, on the other hand, reported that the shipping company posted a net profit of $284 million in the first half, reversing a loss of $435 million a year earlier, with time charter equivalent revenue up 61% to $809 million and EBITDA more than doubling to $547 million. Splash 247 added that Sovcomflot's shares fell nearly 4% on Tuesday following the sale announcement.

Sovcomflot remains under sanctions from the United States, the European Union and the United Kingdom over its role in transporting Russian energy exports, which Maritime Executive said would make it difficult to trade its shares outside Russia, although there is no regulatory obstacle to attracting private investment within the country. The outlet also noted that the company had more than 120 tankers before the conflict in Ukraine and that, following the sanctions, ownership of many of its vessels was transferred to other entities abroad, which continue operating in Russia's oil trade as part of the so-called shadow fleet.

In addition to Sovcomflot, Russia is considering selling a 20% stake in the Novorossiysk Commercial Sea Port and a roughly 23.8% stake in flag carrier Aeroflot, as part of its search for funds to cover rising military spending. Portal Portuario noted that, according to Finance Ministry estimates, Russia's budget deficit could more than double this year compared to initial forecasts, reaching 3.2% of gross domestic product.