Sovcomflot Elects New Chairman and New CEO

On September 24, 2019, the Board of Directors of PAO Sovcomflot elected Sergey Frank as its new Chairman. Igor Tonkovidov was appointed as the company's new Chief Executive Officer. Both appointments are with immediate effect.

The meeting was attended by Maxim Akimov, Deputy Prime Minister of Russia, who noted in his address: "Through consistent implementation of Sovcomflot's Strategies 2005-2011 and 2012-2018, the company has transformed itself into a global leader in energy shipping and offshore services. Over the past 15 years, Sovcomflot fleet has grown more than threefold. The company has developed and implemented a number of advanced technical solutions within the global shipping industry and built a best-in-class operating platform, making Sovcomflot a reliable maritime partner for Russian offshore projects and delivering Russia's commitment to the Paris Agreement. The shareholder believes that Sovcomflot's expertise should be used to further develop the Russian Arctic and new projects both in Russia and overseas."

Mr Akimov said that the Russian maritime sector faces a massive challenge to increase significantly the volume of cargo transported along the Northern Sea Route, with LNG shipments – one of Sovcomflot's areas of specialization – accounting for more than a half of the anticipated cargo volume.

"The effective implementation of long-term, capital-intensive transportation solutions for oil and gas projects requires the development of a fundamentally new relationship between all major stakeholders, including transport providers, oil and gas companies, financial institutions, shipbuilders, and other organizations. A blueprint for such an operating model was established this year with Sovcomflot to facilitate the future safe deliveries of Russian LNG to the global market. Establishing alliances of this scale, as well as responding to other challenges facing the global maritime industry, will require the ongoing attention and support of the Board of Directors," said Mr Akimov.

Mr Akimov continued: "Given the scale of challenges and opportunities facing Sovcomflot, the shareholder will further support the role of the Board of Directors in strategic planning beyond 2025. The shareholder has recommended that Sergey Frank be elected as the new Chairman of Sovcomflot's Board of Directors, with Igor Tonkovidov appointed as the Company's new Chief Executive Officer, which was fully endorsed by the Board."

Sergey Frank, Chairman of the Board of Directors, highlighted that amongst the company's most notable achievements of recent years has been its increase in scale and development of its unique expertise and competences. The company has successfully deployed cutting-edge technologies, implemented innovative technical solutions, and reshaped its business model around project-based industrial shipping. The company's contracted future revenues now exceed USD 8.0 billion. These results have only been possible due to effective cooperation with our clients, for which I am extremely grateful, as well as for the professional excellence and dedication of Sovcomflot's employees both at sea and ashore," said Mr Frank.

"Given the profound transformation that the global maritime industry is undergoing, the remit of the Board of Directors will extend to ensure that Sovcomflot is well prepared to handle the new challenges and opportunities such a transformation brings. This includes the fast-track integration of digital technology into business processes, continual compliance with ever tightening environmental regulations, recruiting and training the next generation of Sovcomflot's leaders. The Board will closely oversee certain projects, transactions and initiatives of strategic importance to Sovcomflot's future sustainable development," added Mr Frank.

Igor Tonkovidov, Chief Executive Officer of PAO Sovcomflot, emphasized that he sees the full-scale implementation of the plans and projects within the company's Strategy 2025 as a top priority.

"Sovcomflot will continue to upgrade its fleet, with a focus on further enhancing its operational efficiency, to meet our customers' needs. We will continue to pay strong attention to the quality of our fleet management, the reduction of the human-induced impact of maritime operations on the environment, issues related to the training and staffing of our vessels with qualified personnel, and further enhancing the wellbeing of our employees. With the shareholder's support, this course of action will allow Sovcomflot to consolidate its leadership position in the global shipping market," said Mr Tonkovidov.

Sergey Frank 

Sergey Frank was born in Novosibirsk in 1960.

Mr Frank graduated with distinction from the Faculty of Navigation of the Admiral Nevelskoy Far Eastern High Engineering Maritime College in 1983 (now Admiral Nevelskoy Maritime State University), from the commercial school of the All-Union Academy of International Trade in 1989, and from the Faculty of Law of the Far Eastern Federal University in 1995. He holds a PhD degree in Technical Sciences.

Mr Frank became President and Chief Executive Officer, Chairman of the Management Board and a member of the Board of Directors of PAO Sovcomflot in October 2004. Earlier in his career, between 1989 and 1995, he worked for the Far Eastern Shipping Company; the last position held there was being Deputy Director General for Business and Finance. From 1995, he held a senior position in the Ministry of Transport of the Russian Federation and later served as Minister of Transport between 1998 and 2004.

Mr Frank is the recipient of a number of national, government and industry awards.

Igor Tonkovidov 

Igor Tonkovidov was born in Khabarovsk in 1964.

Mr Tonkovidov graduated from the Odessa Institute of Marine Engineers with a degree in Mechanical Engineering in 1986. In 2001, he graduated from the University of London, UK, with a degree in Financial Management, and in 2018 he completed the AVIRA educational program for senior executives at INSEAD Business School, France.

Mr Tonkovidov has served as Executive Vice President, Chief Technical Officer of PAO Sovcomflot since December 2012, while also being a member of the Management Board of the Company. Earlier, between 2008 and 2012, he was Vice-President for Fleet Operations and then President of Novorossiysk Shipping Company (Novoship - a subsidiary of Sovcomflot). Between 2006 and 2008, Mr Tonkovidov was Director of Volga-Baltic Company and between 2003 and 2006, he was Technical Director of Volga Shipping Company. Between 1994 and 2003, he served in various divisions of the Sovcomflot Group.

Mr Tonkovidov is the recipient of a number of national, government and industry awards.