The France-based GTT, a technological expert in containment systems with cryogenic membranes used to transport and store liquefied gases, ceases its activities in Russia and ends work in the country, after an in-depth analysis of European sanction packages No. 8 and 9 prohibiting engineering services with Russian companies.
French specialist, says that is involved in Russia in the tank design of 15 ice-breaking LNG carriers, under construction by the Zvezda Shipbuilding Complex (Zvezda), as well as in the design of three Gravity Based Structure units for Saren B.V.
As of October 1, 2022, revenues of €74 million remained to be recognised for the ice-breaking LNG carriers by 2025 and €12 million for the Gravity Based Structure units by 2027, i.e. a total exposure representing less than 6% of the order book.
According to the company´s statement, from 8th of January, 2023 the contract with Zvezda will be suspended and GTT’s interventions will be limited, on the two most advanced LNG carriers, to ensuring the safety of the projects, and the integrity of the technology, in compliance with the international sanctions in force. With regards to the Gravity Based Structure units projects, the terms of GTT’s departure are currently being finalised.
GTT said: “These elements will have a financial impact mainly from 2023. GTT’s order book will no longer include projects in Russia in the future. In addition, from 2023 onwards, the Group’s annual targets will exclude the revenues and Ebitda that would be generated by the last services in progress in Russia”.
However, GTT highlights the fact that other orders which are under construction in Asian shipyards, relating to six ice-breaking LNG carriers and two Floating Storage Units, and are intended specifically for Russian Arctic projects, are proceeding.
“To date, these projects are proceeding normally. As of October 1, 2022, these orders represented a total revenue of €31 million for GTT, to be recognised by 2024. Finally, eight conventional LNG carriers ordered by international shipowners, under construction in Asian shipyards, are also intended for Russian Arctic projects, but can operate in all types of conditions”, as GTT says.