Baltic Oil Terminals, the infrastructure company with operations in Kaliningrad, Russia, lost almost a third of its value today after announcing that the Phase II expansion of the Rosbunker Terminal would be delayed.
Baltic Oil Terminals has found itself stuck between a rock and hard place, with its own timescales hit by an ‘incident’ at a neighbouring shipyard combined with increased security protocols initiated by the Russian Navy in light of recent geo-political events.
On a brighter note, Baltic stated that its current operations at Rosbunker were only lightly impacted by the change in circumstances, and were trading profitably on a monthly basis. Unfortunately, the overall situation meant that the company would be “substantially” downgrading its expectation for the second half of the year.
“Baltic and its Russian partners are closely monitoring the situation in order to make a more detailed assessment of the status of Phase 2 of the Rosbunker terminal. With the exception of design and some procurement, until these issues have been fully clarified, we are unable to provide a definitive timetable for the implementation of Phase 2. Baltic is working closely with its Russian partners and the local authorities with the aim of fulfilling all obligations required to achieve the successful completion of Phase 2.”