European shipyards have been providing essential repairs to Russia’s ice-class LNG carriers, enabling continued LNG shipments from Russia’s Arctic Yamal LNG plant, despite tough Western sanctions on the country’s energy sector, according to the Financial Times.
Damen Shipyard and Denmark’s Fayard A/S Shipyard have reportedly been servicing Russian Arc7 ice-class LNG carriers, raising questions about the effectiveness of the European Union’s policy of “phasing out Russian energy”.
Satellite imagery and port call data from analyst firm Kpler show that 14 of the 15 dedicated Arc7 LNG carriers operated by the Yamal LNG plant have received repairs at these European yards.The Arc7 fleet is critical to exports from the Yamal plant during the winter months, when natural gas prices in the Northern Hemisphere typically peak.
Malte Humpert, Arctic shipping expert at High North News, said, “If the two yards are restricted from conducting maintenance operations, the entire logistics of Yamal LNG will be in question, and the search for alternative service options will severely disrupt fleet operations.”
Due to the exemption of energy transportation from EU sanctions, ships not flying the Russian flag still have access to key European technologies and dock facilities. Damen Shipyard confirmed its involvement in the repair of several LNG carriers carrying Russian gas, but emphasized compliance with EU sanctions and denied any role in the shipping company’s operations.Fayard Shipyard declined to comment on the matter.
The “Christophe de Margerie” is the only Arc7 LNG carrier that has been rejected by European shipyards because it is owned by the sanctioned Russian shipping company Sovcomflot, and has been out of service for six months due to lack of maintenance.
European imports of Russian LNG have increased since the February 2022 Russia-Ukraine war, despite the EU’s efforts to reduce its dependence on Russian energy. The Yamal LNG plant exported 20.9 billion m³ of LNG to Europe in 2023, a large part of which was re-exported to other regions. According to the Bond Beter Leefmilieu think tank, Yamal’s LNG supplies account for about 85-90% of the EU’s total LNG imports from Russia.
Designed for Arctic operations and equipped with state-of-the-art full rotators, the Arc7 Ice Class LNG carriers, at a cost of $333 million each, are irreplaceable in terms of capacity and technical specifications. European shipyards in France and Denmark remain the only viable options for maintaining these vessels.
In an effort to reduce dependence on Russian LNG, EU countries previously agreed to ban transshipments of Russia’s LNG through European ports from March 2024.According to the Financial Times, repairs to Russian LNG carriers by European shipyards “highlight a loophole in the sanctions framework.”