Ship engine makers cut ties with Russia as maritime trade pressure grows By Reuters


© Reuters. FILE PHOTO: Russian Navy vessels are anchored in a bay of the Black Sea port of Sevastopol in Crimea May 8, 2014. REUTERS/Stringer

By Jonathan Saul

LONDON (Reuters) – Finland’s Wartsila, a leading ship engine maker, has suspended business with Russia including equipment training while German counterpart MAN Energy Solutions is reviewing contracts, adding further trade pressure on Moscow.

Russia’s maritime sector is already grappling with the winding down of other services including ship certification by leading foreign providers – vital for accessing ports and securing insurance – shipping companies pulling out and Western sanctions being imposed on its leading ocean transporter Sovcomflot after Moscow’s invasion of Ukraine.

Wartsila, a top global marine and energy equipment maker, has suspended all deliveries and sales to Russia and Belarus due to the war in Ukraine and would take action to “follow the European Union sanctions framework as it evolves”, a company spokesperson said.

“As part of this, training on using our engines/ship technology for Russian legal entities has been halted, regardless of the nationality of the individuals,” the spokesperson said.

“Such training can be offered to Russian nationals working for non-Russian legal entities. Training cannot however be offered to individuals, regardless of their nationality, having their residence in Russia.”

Two shipping sources said MAN Energy Solutions had also suspended training for using its equipment in Russia.

A company spokesperson said it was “complying 100% with the imposed sanctions”.

MAN Energy Solutions said separately in a statement that all existing contracts and orders connected to Russia “have to be reviewed on a case by case base”.

Shipping industry sources say given the complexities of the world’s seaborne trade it was unclear how Russian companies would be able to operate with multiple services being withdrawn.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*