Sanctions Disrupt Sale Of Arctic LNG Ships, Hanwha Ocean Reports

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  • Shipbuilder Hanwha Ocean Co. faces challenges in selling specialized icebreaker vessels intended for the Arctic LNG 2 project due to sanctions imposed on Russia following the Ukraine invasion.
  • The vessels, designed for freezing Arctic conditions, remain under Hanwha Ocean’s ownership as finding new buyers is complicated by the sanctions, which require potential purchasers to work with the sanctioned project.

Hanwha Ocean Co. is encountering obstacles in selling icebreaker vessels built for the Arctic LNG 2 project due to sanctions imposed on Russia. The sanctions have disrupted the original shipbuilding contracts and hindered the search for new buyers for the specialized vessels.

Cancellation of Contracts

The shipbuilding contracts for the icebreaker ships were terminated after Russia’s invasion of Ukraine, affecting Hanwha Ocean’s plans to deliver the vessels for use at the Novatek PJSC-led Arctic LNG 2 export plant. The cancellation reflects the broader impact of geopolitical tensions on international trade and business operations.

Challenges in Finding Buyers

Finding new buyers for the specialized vessels is complicated by the sanctions, as any potential purchaser would need to collaborate with the sanctioned Arctic LNG 2 project. The vessels are uniquely designed for the freezing conditions of the Arctic LNG 2 facility, limiting the pool of prospective buyers to those willing to navigate the complex geopolitical landscape.

Compliance with Sanctions

Hanwha Ocean emphasizes its commitment to compliance with applicable sanctions regimes, indicating that the vessels remain under its ownership amid the challenges in finding a solution. Despite the difficulties, the company remains focused on adhering to legal and regulatory requirements while navigating the complexities of the situation.

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Source: BNN Bloomberg