Report: Russian LNG Fleet Makes Stops in France for Repairs
As the West mounts sanctions against the Russian energy industry, a new investigation has found that European yards are instrumental in keeping Russia’s LNG carriers afloat.
A ship-repair yard in Brest is reportedly offering dry dock services to ice-class LNG carriers operating in Russia, according to the investigation by Disclose, an investigative media NGO. Primarily, the LNG tankers serviced in Brest carry gas out of the Russian Yamal LNG project in Siberia.
On September 25, the 295-meter long gas tanker LNG Merak arrived at the Port of Brest for dry-docking. For almost three weeks, the Hong-Kong registered vessel underwent scheduled maintenance of its gas tanks and cargo pumps. In addition, the hull was cleaned and repainted, as well as repairs of its plumbing. LNG Merak left the dry dock last week on October 21.
The vessel became the tenth Russian ship to have sought repair in the Brest shipyard since Russia invaded Ukraine in 2022. Eight of the vessels are from the icebreaking LNG carrier fleet, which transports gas from Yamal LNG in the Russian Arctic.
Although the Brest yard does not violate EU sanctions for servicing these tankers, it plays a critical role in supporting the Russian LNG industry. Yamal LNG is a major export terminal operated by Novatek. As of last year, the project produced 18 million metric tons per year of LNG, with over 70 percent of this shipped directly to Europe and Asia.
For this reason, Yamal LNG is regarded as a major source of revenue for Kremlin, providing the windfall used in financing the war in Ukraine. In its recent sanctions, the EU targeted Yamal by banning transshipment of Russian LNG in EU ports; however, European utilities continue to import large quantities of Yamal’s production for use within the EU, and this remains lawful.
“A French port accommodating the gas tankers has significant repercussions. At a time when the EU is trying to be less dependent on Russian fuels, a French repair yard is facilitating consignments of Russian LNG by providing maintenance for gas tankers carrying fuel from Yamal,” Ana Maria Jaller-Makarewicz, an analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), told Disclose.
A Danish yard has also been identified in servicing the Russian LNG fleet. Denmark is at a strategic location for gas tankers operating from the Arctic to Western Europe.
The Russian shipbuilding industry has been greatly affected by Western sanctions. This means the country is unable to service its LNG fleet domestically, thus the need for foreign yards. Last week at a ministerial briefing, the Russian Deputy Prime Minister Yury Trutnev acknowledged that Russia is experiencing a shortage of ice-class ships for its Northern Sea Route.
“The capacity of Russian shipyards is enough to build 16 ice-class cargo ships by 2030, while the demand is for at least 70 ships,” said Trutnev, who also doubles up as Kremlin’s representative for the Far East development.