(Reuters] – Russia’s most important shipping company Sovcomflot said Friday it would sell a part of its fleet to pay off outstanding loans and deal with Western sanctions.

Sovcomflot faces increasing challenges when it comes to completing charters. This is because ports, end purchasers and marine insurers are withdrawing from Russian companies due to the sanctions that were imposed after Moscow invaded Ukraine.

Lloyds (LON : List shipping paper reported, citing unnamed source, that upto a third Sovcomflot’s fleet was for sale in order to repay Western loans.

Sovcomflot claimed that “rumours” of the selling of a third its fleet were exaggerated.

Sovcomflot reported that both shipping vessels and ships, which were considered to be in decline due to Russian restrictions on commercial ship usage, had been sold.

The company has 122 vessels under its control, which include 34 transporters of petroleum products and 50 tankers. 14 shuttle tanksers, 10 gasoline carriers, and 10 icebreakers.