RUSSIAN shipping giant Sovcomflot has posted a loss of $393m during the first quarter of 2025, blaming the “unprecedented sanctions” imposed on it by the UK, EU and US during the period.

The company and its vessels have been the focus of increased sanctions pressure by Western powers since Russia’s invasion of Ukraine.

Sovcomflot said it “continues to work systematically to minimise the negative impact of sanctions restrictions on its activities, consistently adhering to high standards of maritime safety and the quality of maritime operations”.

But while those sanctions are clearly having an impact on Sovcomflot’s bottom line, Cyprus-headquartered Frontline is more than comfortable operating in an increasingly tense geopolitical environment.

Speaking after his company posted a profit of $33.3m in 1Q25, Frontline chief executive Lars Barstad said the results were “somewhat muted relative to the economic and political backdrop during the period”.

“In times of uncertainty, it’s comforting to operate in an industry that maintains business as usual, transporting oil and products around the world at a steady pace,” he said.

“Utilisation on the larger ships has improved during the quarter and with continued pressure and enforcement on sanctioned trades, we have seen healthy developments in activity across the segments that Frontline deploys.”

Frontline said it expected sanctions pressure to continue, pushing the oil sector towards “easier and less risky import solutions”.

Like competitor CMB.Tech, the Fredriksen-owned outfit said the way US-Iran relations develop would be crucial for the market moving forwards.

“In a scenario where the US strikes a deal and sanctions are lifted, we might see Iranian oil exports shift from the shadow fleet to the mainstream fleet as exports increase,” Frontline said.

“Vessels with a problematic history are unlikely to return to the mainstream market as compliant charterers need compliant ships.”