After a detailed analysis of European sanctions packages on the ban on engineering services with Russian companies, GTT announced that it would end its activities in Russia.
AOn 1 January 2023, the contract with Zvezda will be suspended and GTT’s interventions will be limited to the two most advanced LNG tankers to ensure project safety and technology integrity, in compliance with international sanctions in force.
As regards the GBS projects, the conditions for exiting the GTT are being defined.
From a financial point of view, these elements will mainly have an impact from 2023 onwards. Projects in Russia will no longer be in GTT’s order book.
Additionally, the Group’s annual targets from 2023 onwards will exclude revenue and EBITDA that would be generated by the latest services running in Russia.
We recall that other orders under construction in Asian shipyards, relating to six LNG icebreakers and two FSU3, are specific for projects in the Russian Arctic. So far, these projects have proceeded normally.
As of October 1, 2022, these orders represent a total turnover of 31 million euros for GTT, to be recorded by 2024. Finally, eight conventional LNG tankers ordered by international shipowners and under construction in Asian shipyards are also destined for projects in the It’s Russian Arctic, but can be used in any condition.
The Group remains sensitive to the evolution of the situation and adopts all necessary measures to protect its employees and stakeholders in compliance with international sanctions
Said GTT.
