The company, which provides LNG tanks for LNG shipping and storage facilities, said it is involved in tank design for 15 ice-breaking LNG carriers set for construction at Zvezda Shipbuilding, and three Gravity Based Structures (GBS) for Arctic LNG 2 project for the Russian joint venture between Saipem and Renaissance Heavy Industries Russia (Saren).
GTT is also involved in the construction of six ice-breaking LNG carriers and three Floating Storage and Regasification Units (FSRUs) in Asia, which are bound for Russian Arctic projects, and these orders are proceeding as normal.
GTT said that as of October 1, 2022, revenues of €74m were outstanding for the Zvezda LNG carriers through 2025 and €12m for the GBS through 2027.
The contract between GTT and Zvezda will be suspended as of January 8, 2023, with GTT maintaining minimum interventions in the most advanced LNG carrier projects to ensure technology integrity and project safety.
The details of the withdrawal from the GBS project are still being finalised.
The termination of the Russian activities comes after an analysis of European sanctions packages introduced in the wake of Russia’s invasion of Ukraine and the ongoing war, including sanctions prohibiting engineering services.
GTT’s exposure to the Russian projects represents under 6% of its total orderbook; the financial impacts will be felt from 2023 and the Russian projects will no longer be included in the firm’s orderbook and revenue projections.
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