EU's last shipyard servicing Russian LNG fleet may repair 6 vessels before ban, report says

The Danish shipyard Fayard, the last EU shipyard still servicing Russian Arctic liquefied natural gas (LNG) tankers, could repair up to six Russia-linked vessels before new EU restrictions take effect, according to a report by environmental and sanctions-monitoring NGO Urgewald.

The vessels play a key role in sustaining exports from Russia's Yamal LNG project, one of the country's most important gas export hubs.

Despite the Danish government's opposition to the tankers, Urgewald's analysis, shared with the Kyiv Independent on June 1, suggests that as many as six of the fleet's 15 Arc7 ice-class LNG carriers may require maintenance this summer.

The estimate relies on historical servicing patterns showing that vessels operating in harsh Arctic conditions typically undergo major repairs approximately every three years.

According to the report, based on vessel-tracking data from Kpler, each of the six vessels has transported an average of 5.3 million metric tons of Russian LNG since Russia launched its full-scale invasion of Ukraine on Feb. 24, 2022.

Urgewald estimates the market value of those cargoes at roughly 4 billion euros ($4.6 billion) per vessel. Over their operational lifetimes, the six tankers have carried Russian LNG worth an estimated 32 billion euros ($37 billion).

Alexander Kirk, a sanctions campaigner at Urgewald, urged Fayard to end its cooperation with the vessels.

"Fayard should stop benefitting from this business," he said. "This is not routine ship repair. Every Arc7 tanker serviced in Denmark could help prolong Russian Arctic LNG exports for years and send millions more back to the Kremlin."

Campaigners argue that repairing the vessels before the restrictions take effect could allow them to continue generating revenue for Russia even as Europe moves to tighten sanctions on Russian gas exports and supporting infrastructure.

The EU's restrictions on maritime services for Russian LNG projects are part of a broader strategy to phase out imports of Russian gas beginning next year, a move expected to further reduce activity at the Yamal LNG facility.

The maritime services ban for LNG tankers operating in Russia is scheduled to enter into force in 2027. Analysts say this summer could represent Russia's final opportunity to service Arc7 vessels at European shipyards before the restrictions take effect.

Svitlana Romanko, founder and executive director of Razom We Stand, called on Danish companies to align their business practices with Denmark's support for Ukraine.

"Denmark has been a strong supporter of Ukraine, and Danish companies should reflect that sentiment," she said. "Fayard should not undermine solidarity with Ukraine and must now refuse to service vessels connected to Russian Arctic LNG."