Danish shipyard still services Russian LNG tankers despite government opposition - FT
Kyiv • UNN
The Danish shipyard Fayard is repairing Russian Arc7 gas carriers despite government protests. It is the only company in the EU providing such services until sanctions are introduced in 2027.
The Danish shipbuilding company Fayard continues to service ice-breaking liquefied natural gas (LNG) tankers that provide critical exports from Russia's Yamal gas plant, despite objections from the Danish government and a forthcoming EU ban on providing maritime services to vessels linked to Russia. This was reported by the FT, according to UNN.
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As noted, Fayard is the only shipyard in the EU that continues to provide dry-dock services to Arc7-class vessels, which depend on European shipyards due to their technical expertise and proximity to the main tanker trade routes running from Yamal in Siberia to ports in northwestern Europe.
An analysis conducted by the NGO Urgewald shows that six out of 15 Arc7-class icebreakers are scheduled to undergo repairs at the Danish shipyard this summer, ahead of an EU ban set to take effect in 2027 on providing services to LNG tankers operating with Russia.
According to its annual report, Fayard serviced five tankers arriving from Yamal last year.
EU sanctions on maritime services align with the bloc's broader ban on Russian gas imports, which will also take effect next year. This restriction on Russian trade is likely to reduce Yamal's load factor and redirect exports to Asia.
In August last year, the Dutch company Damen, another European shipyard operator servicing the Arc7 fleet, announced it would stop working on tankers at its French shipyard in Brest "in accordance with Dutch foreign policy, which discourages domestic companies from supporting Russian LNG exports."
It is reported that since the start of Russia's full-scale invasion of Ukraine, Damen has accepted eight Arc7-class vessels, while Fayard has accepted 15.
Separately, criminal proceedings are underway against Damen, initiated by the Dutch Public Prosecutor's Office in connection with alleged violations of EU sanctions against Russia.
While maintenance activities have never been illegal, Danish Prime Minister Mette Frederiksen stated after initial reports of the assistance Fayard provided to the Yamal-bound fleet that it was "completely incomprehensible" and that they "simply must stop it."
The EU has significantly reduced imports of Russian gas since February 2022, but has been slow to phase out Russian fuel due to the continent's heavy dependence on external energy resources and high energy costs. According to the analytical group Kpler, in the first quarter of 2024, imports from Yamal to the EU rose by 17% to 5 million tons compared to the same period last year, as a result of energy supply constraints caused by the crisis in the Persian Gulf.
In another step aimed at reducing Russia's energy revenues, the UK government last week published its own ban on providing maritime services to vessels operating in Russia.