Danish shipyard servicing Russian LNG tankers faces Ukraine sanctions criticism

• Denmark's Fayard shipyard is accused of servicing Russia's Arc7 LNG tankers, which are vital for Russian LNG exports.
• Fayard is reportedly the last shipyard in the EU with the technical capability to maintain these specialized vessels.
• The EU is set to implement a ban on such maintenance work in January 2027.
• Campaigners argue that servicing the tankers now allows them to operate for years beyond the ban, undermining sanctions.
• Fayard maintains it services international vessels transporting LNG to Europe in compliance with all regulations.

A Danish shipyard, Fayard, is facing criticism from Ukraine for servicing Russian liquefied natural gas (LNG) tankers that are crucial for Russia's Arctic LNG exports. Ukraine's sanctions chief, Vladyslav Vlasiuk, stated that Fayard is effectively helping to sustain these exports by being the only shipyard in the EU with the necessary dry docks and technical expertise to maintain the specialized Arc7 ice-class LNG carriers.

The EU is set to implement a ban on such maintenance work in January 2027. However, campaigners argue that maintenance performed this summer could allow the vessels to continue operating for years after the ban takes effect, thereby diminishing the impact of sanctions before they are fully implemented. Shipping expert Malte Humpert described the current period as a "last hurrah" for such servicing in Europe.

Fayard has reportedly received at least one such vessel and expects up to five more before the EU ban. The company stated that it services specific international vessels transporting LNG to Europe to support the continent's energy supply and that it operates in full compliance with all rules and guidelines. Fayard also noted that substantial trade in goods continues between the EU and Russia.

Campaigners, including Sebastian Rötters from Urgewald, argue that Fayard is taking an easy way out by adhering to current legality, urging the company to consider the broader implications of supporting Russia's war effort. Danish Green MEP Villy Søvndal called on Fayard to "Stand with Ukraine, not with Putin's gas exports."