Russia cancels contract for the construction of two icebreakers

• Rosmorport has canceled the contract for two icebreakers due to sanctions.
• The construction has not started, despite the advance payment.
• Sanctions have also impacted other sectors of the Russian economy.

This is reported by Ukrayinska Pravda, RBC Ukraine.

The company Rosmorport announced the termination of the contract with the Onezhsky Shipbuilding Plant for the construction of two innovative icebreakers worth 18.5 billion rubles (about 231 million US dollars). According to information from the Russian newspaper Vedomosti, these vessels were supposed to operate on diesel fuel and liquefied natural gas, capable of breaking ice up to 1.5 meters thick.

The contract was signed in 2021 and provided for the construction of icebreakers of the Icebreaker7 class, 95 meters long with a capacity of 12-14 MW. These vessels were planned to be used in the Baltic, White, and Barents Seas, as well as in the Arctic Ocean during the summer-autumn period.

The initial term for delivery was scheduled for 2024, but later it was postponed to 2026. However, actual construction did not start due to sanctions. Initially, it was planned that the work would be carried out by the Turkish shipbuilding plant Kuzey Star, but the agreement was canceled after Russia's invasion of Ukraine.

Despite the fact that work was not carried out, Rosmorport has already paid 9.27 billion rubles to the plant, which now is obliged to return this money within five working days after the contract is terminated.

Background

Not long ago, the European Union adopted the 18th package of sanctions against Russia, which included 22 banks and 26 subsidiaries linked to the military-industrial complex of Russia. According to the words of the EU's High Representative for Foreign Affairs Josep Borrell, this package is one of the most significant since the beginning of the full-scale war. Ukraine has also synchronized its restrictions with European sanctions, introducing new measures against critical resources of Russia.

Tags: Russia/Economy