Letter from the CEO

Dear Partners, Customers and Shareholders,

The past year marked a significant milestone for FESCO Transportation Group, as it marked our 145th anniversary. We focused our efforts on ensuring this milestone served as a launchpad for major, forward‑looking projects in both business and the social sphere. At every stage of this journey, we have received full support from Rosatom State Corporation.

One of the most important events of 2025 was the expansion of FESCO’s infrastructure assets. Acquiring the management company of Kaliningrad Sea Fishing Port helped strengthen our position in the Baltic Basin.

A balanced approach to the growth of assets and transportation volumes is already yielding results. In the Baltic Basin, FESCO transported more than 40 thousand TEU between Kaliningrad and St Petersburg in 2025, a 2.2-fold increase YoY. To enhance interregional logistics, we deployed a second container vessel on the route, boosting capacity and service frequency for our customers.

FESCO also made significant strides to improve transport connectivity between Russia and friendly nations. As part of its strategy to tap into new markets, the Group launched services between Russia and the port of Durban in South Africa, complete with onward road transportation across the country. This approach substantially streamlines interactions for Russian exporters and importers engaging with partners in this fellow BRICS nation on FESCO’s logistics map. In the past year, our container vessels also began direct calls at Bangkok (Thailand) and Pasir Gudang (Malaysia) under the Intra Asia Service linking Southeast Asian countries.

Whether launching new routes or managing the existing ones, we continuously monitor service relevance to promptly address growing business demand. In response to surging interest, FESCO deployed the third container vessel on the Indian Line West route connecting Novorossiysk, ports in India and the UAE, thereby bolstering fleet capacity and service regularity.

As part of our delivery diversification strategy, we place a strong emphasis on developing container transportation through land border crossings. April 2025 saw a record number of container trains carrying imports from China, with 82 trains dispatched during the month. By the end of the year, we increased container transportation volumes through land border crossings by 55% to 100 thousand TEU.

For the sixth year running, Commercial Port of Vladivostok remained the industry frontrunner, confidently maintaining its leadership in container handling volumes. This milestone was driven in large part by ongoing port infrastructure upgrades. In 2025, 15 new terminal tractors were purchased for the port, allowing for the renewal of 30% of the fleet. In addition, the first stationary portal-type inspection and screening facility at a Russian maritime border checkpoint was launched. It enables 24/7 container scanning in transit and doubles customs clearance speed, reducing processing time to one day.

Despite a demanding global logistics environment, our drive for continuous improvement received well‑earned acclaim. In 2025, the Group became a winner of the Exporter of the Year competition at various levels. FESCO’s social projects were also praised by the expert community. In 2025, the Group was awarded the status of Partner of Russia’s National Projects for its socially significant initiatives. Experts of the Our Contribution Award named eight of the Group’s initiatives among the most effective, highlighting their alignment with the goals of the Education, Environment, and Healthcare national projects.

However, the most meaningful recognition remains the continued support of FESCO’s projects from our customers, shareholders, and local communities. Together with Rosatom State Corporation, we will navigate the turbulent geopolitical landscape and reach our goals.

What lies ahead in 2026? For FESCO, it will be the year of the customer. This means we will work with even greater intensity to develop new services, launch new routes, and open new offices. We listen to our customers, understand their needs, and expand our route geography accordingly. This synergy of shared ambitions has proven its effectiveness throughout our 145‑year history. It will continue to guide our strategy in the future.

Peter Ivanov
CEO, Chairman of the Executive Board