European shipyards have been providing essential maintenance to Russian ice-class tankers, enabling the continued transport of liquefied natural gas (LNG) from Russia’s Yamal plant in the Arctic, despite stringent Western sanctions targeting Russia’s energy sector. According to the Financial Times, this work has been carried out by Damen shipyard in Brest, France, and Fayard A/S in Denmark, raising questions about the effectiveness of EU policies aimed at phasing out Russian energy.
Satellite imagery and port-call data from analytics firm Kpler reveal that 14 of the 15 specialized Arc7 tankers operating out of the Yamal LNG facility have received servicing at these European facilities. The Arc7 fleet is integral to maintaining Yamal’s exports during winter months, when gas prices in the northern hemisphere typically peak.
“If those two shipyards were off-limits, it would put the whole logistics operations in doubt,” said Malte Humpert, an Arctic shipping expert at High North News. Humpert added that seeking alternative servicing options would significantly disrupt the fleet’s operations.
The EU’s sanctions regime includes exemptions for energy transportation and does not target vessels that are not Russian-flagged, allowing the tankers to continue accessing critical technical expertise and dry dock facilities in Europe. Damen has confirmed its involvement in repairing several LNG vessels transporting Russian gas but emphasized compliance with European sanctions and disavowed any role in the operational choices of the shipping companies. Fayard declined to comment on the matter.
Russia’s reliance on these facilities highlights the challenges of replacing European know-how. The Christophe de Margerie, the only Arc7 tanker excluded from European yards due to its ownership by the sanctioned Russian shipping company Sovcomflot, has been out of service for six months, illustrating the fleet’s dependence on European expertise.
Despite EU efforts to reduce dependency on Russian energy, imports of Russian LNG have risen since the start of Moscow’s invasion of Ukraine in February 2022. Yamal LNG exported 20.9 billion cubic meters of LNG to Europe in 2023, with a significant portion re-exported to other regions. Supplies from Yamal account for approximately 85–90% of the EU’s Russian LNG imports, according to the Bond Beter Leefmilieu think-tank.
The Arc7 tankers, designed for Arctic conditions with advanced Azipod propulsion systems and built at a cost of $333 million each, have no immediate replacements in terms of capacity and technical specifications. European shipyards in France and Denmark remain the only viable options for maintaining these vessels, further complicating the EU’s plans to eliminate Russian fossil fuel imports.
In a step toward reducing dependency, EU countries agreed in June to ban the trans-shipment of Russian LNG via European ports starting March 2024. However, the ongoing repairs of Russian tankers highlight the persistent gaps in the sanctions framework and underline the complex interplay between geopolitical goals and practical constraints in the global energy market.
