Samsung Heavy Industries Delivers Icebreaker To Russia

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Samsung Heavy Industries announced that it delivered one of the two Aframax icebreakers ordered by Sovcomflot, a Russian state-run shipping company, at the end of March. The other one is expected to be delivered soon, says an article published in Business Korea.

The shipbuilder said it received the payment for the vessel without any problem. The ship was ordered for US$160 million in November 2019.

Following Russia’s invasion of Ukraine, major countries imposed economic sanctions on Russia. Russian financial companies were excluded from the SWIFT international payment system, so concerns were raised that Samsung Heavy Industries would face difficulty in receiving the payment for the ship.

The shipbuilder said that the payment was made according to the contract. But it has kept under wraps specific issues such as the currency or payment method.

The order backlog of the three major Korean shipbuilders landed from Russian clients is currently around US$8.05 billion (about 9.8 trillion won). Samsung Heavy Industries’ order intake of US$5 billion is the largest among the three.

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Source: Business Korea

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