Russian shipping company hit by U.S. sanctions on verge of bankruptcy

On November 10, the cargo vessel Diana belonging to the to Vladivostok-based Gudzon Shipping was not allowed to enter the port of Vladivostok. The crew reportedly left the vessel because of unpaid salaries, TASS reports.

“Because of the North Korea related sanctions imposed by the U.S., the company lost almost all of its contracts and cannot ensure operation of its vessels anymore. The company is also unable to sell its assets because of restrictions imposed by its bank which holds the company’s property as collateral,” said the CEO of Gudzon Shipping Gennady Kononenko.

According to him, a number of criminal cases have been opened against him because of failure to pay the salaries to the company’s employees.

According to Kononenko, the ship left without crew in open sea poses a risk to the environment, but the port authorities are not responding to company’s requests to allow docking for the ship.

On July 1, 2018, the US introduced sanctions against three Russian companies and one Russian citizen for aiding the development of the North Korean nuclear program.

In March 2016, US President Barack Obama introduced extensive sanctions related to North Korea’s nuclear program and gave the US authorities permission to blacklist any companies and citizens who collaborate with the major sectors of the North Korean economy.

In 2018, the U.S. Treasury Department imposed sanctions against the Russian-based company Gudzon Shipping. The list included six vessels under the Russian flag: Patriot, Neptune, Bella, Bogatyr, Partizan and Sevastopol. According to the American authorities, they are involved "in the transfer of oil products to North Korean ships, as well as in activities prohibited by the UN Security Council."

  Hudson Shipping, Vladivostok, North Korea