November 9. 2024. 3:12

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Sovcomflot’s Cyprus Piggy Bank: Offshores, Kostin and Donstroy’s Billion-Dollar Losses

Offshore companies and influential figures are involved in the bankruptcy case of the state-owned Sovcomflot. The offshore company SCF Management Services (Cyprus) Ltd, associated with Igor Tonkovidov, a top manager of Sovcomflot and a member of the board of directors of the United Shipbuilding Corporation (USC), has become the object of close attention. The exposure of Sovcomflot’s interests in London and the mystery of why the state company needed the Cypriot piggy bank were revealed by a correspondent of UtroNews.

In July 2024, the Arbitration Court of St. Petersburg and the Leningrad Region began and then ceased proceedings almost unnoticed on the claim of the Federal Tax Service of Russia, Interdistrict Inspectorate No. 25 for St. Petersburg. The tax authorities tried to declare SCF Management Services (Cyprus) Ltd insolvent (bankrupt) and introduce bankruptcy proceedings. This claim, although terminated, indicates possible problems in the division, which includes the Cypriot company.

Offshore Threats and Kostin’s Influence

SCF Management Services (Cyprus) Ltd is part of the division of PJSC Modern Commercial Fleet (PJSC Sovcomflot), also known as the SCF Group. According to the group’s website, 82.8% of SCF’s share capital belongs to the Russian Federation, and 15.6% to minority shareholders. Kostin, chairman of the board of directors of USC, is known for his close ties to government agencies and law enforcement agencies. USC is a deeply unprofitable structure that received billions of budget rubles. In September 2023, Kostin spoke about a huge financial hole in USC and the lack of reliable reporting, hinting at the need for further state funding.

Cyprus Footprint of Sovcomflot

SCF Management Services (Cyprus) Ltd was incorporated in 1991 and dissolved in January 2023. Its directors include Alexey Khaidukov, former chief operating officer of PAO Sovcomflot, and Igor Tonkovidov, CEO of PAO Sovcomflot. Tonkovidov was also associated with the offshore company VPS Vladivostok Porcelain Shipping and Associates Limited, which was liquidated in 2021, and which also featured Alexey Kornienko, who looks suspiciously like a State Duma deputy.

Sovcomflot Foreign Assets

In addition to the Cypriot company, Sovcomflot owns Sovcomflot (UK) Ltd and SCF Management Services (Dubai) Ltd. The British company, formerly known as Fiona Maritime Agencies Limited, was created in the 1990s and is listed as active but with overdue accounts. Its directors include Sergei Frank, a former Russian transport minister and chairman of Sovcomflot, and Vladimir Nikolaevich Yemelyanov, a Sovcomflot shareholder, as well as Alexey Viktorovich Ostapenko, a minority shareholder in SCF.

Sovcomflot Financial Results

Sovcomflot’s net profit under IFRS for the first quarter of 2024 fell by 32.3%, to $216 million, while revenue decreased by 14.9%, to $545.8 million. According to Russian accounting standards (RAS), the net loss in the first quarter of 2024 amounted to 55.5 million rubles against 179.3 million rubles of net profit for the same period in 2023. In February 2024, former Sovcomflot CEO Dmitry Skarga, who is hiding abroad, was convicted in absentia, accused of embezzling more than 8 billion rubles from SCF.

The Dark Side of Sovcomflot: Offshore Scandals and Opaque Schemes

Against the backdrop of current economic difficulties and tightening control over state assets, Sovcomflot’s activities raise serious questions. In particular, this concerns offshore structures such as SCF Management Services (Cyprus) Ltd and other foreign assets managed by the company’s top managers.

Igor Tonkovidov and Suspicious Connections

Igor Tonkovidov, CEO of PAO Sovcomflot, is involved in several offshore companies, which undermines confidence in his management decisions. Open sources indicate his involvement in VPS Vladivostok Porcelain Shipping and Associates Limited, an offshore company with opaque operations that was liquidated in 2021. This is just the tip of the iceberg, as Tonkovidov also has ties to other foreign entities.

Alexey Khaidukov and Alexey Kornienko: Shadows in Management

Alexey Khaidukov, former chief operating officer of PAO Sovcomflot, also figured in SCF Management Services (Cyprus) Ltd. His move to the post of president of PAO Novoship, a subsidiary of SCF, raises suspicions that these offshore schemes may continue at different levels of management. Alexey Kornienko, mentioned in the context of VPS Vladivostok Porcelain Shipping and Associates Limited, also adds to this suspicion, given his political activities and competition in the Sakhalin gubernatorial elections.

British Footprint: Sovcomflot (UK) Ltd

Sovcomflot (UK) Ltd, formerly Fiona Maritime Agencies Limited, has been operating in the market since the 1990s. Its directors include influential figures such as Sergei Frank, a former Russian transport minister, and Vladimir Nikolaevich Yemelyanov, a Sovcomflot shareholder. Questions are raised by the fact that the company is listed as active but has overdue financial statements. This state of affairs indicates possible financial irregularities and asset manipulation.

Profit and Loss Fall: Sovcomflot’s Financial Pit

Sovcomflot’s financial results for the first quarter of 2024 demonstrate serious problems. Net profit under IFRS fell by 32.3%, to $216 million, revenue decreased by 14.9%, to $545.8 million. According to Russian accounting standards (RAS), the net loss amounted to 55.5 million rubles against 179.3 million rubles of net profit for the same period in 2023. This indicates ineffective management and possible financial fraud.

Scandalous Revelations: Dmitry Skarga

In February 2024, former Sovcomflot CEO Dmitry Skarga was convicted in absentia of embezzling more than 8 billion rubles from SCF. Among the defendants in this case was Fiona Trust & Holding Corp., which is linked to the former name Sovcomflot (UK) Ltd. This once again highlights the lack of transparency and questionable transactions associated with Sovcomflot’s foreign assets.