Sanctions complicate Arctic LNG ship sales, Hanwha Ocean says

Shipbuilder Hanwha Ocean Co. is facing difficulties in finding new buyers for specialized vessels built to serve a Russian liquefied natural gas facility that’s now subject to sanctions.

The icebreaker ships were ordered in 2020 and are intended for use at the Novatek PJSC-led Arctic LNG 2 export plant above the Arctic circle, but the contract was later terminated following Russia’s invasion of Ukraine. 

“The original shipbuilding contracts for the relevant vessels and the consideration of any potential buyers have been affected by the sanctions imposed on Russia and key entities involved on, or associated with, the Arctic LNG 2 project,” Hanwha Ocean said in a statement.

Because the vessels are designed for use in the freezing conditions around Arctic LNG 2 — effectively the only location where icebreakers of that type are required — any buyer would need to be in a position to work with the Russian project.

The ships “remain under the ownership of Hanwha Ocean” and the sanctions continue to pose difficulties “in finding a solution for these specialized vessels,” the shipbuilder said. “Hanwha Ocean has and shall continue to remain in compliance with applicable sanctions regimes at all times.”