Arctic LNG 2 Sues Hanwha Ocean for $1 Billion Over Canceled Tanker Contracts

Russia's Arctic LNG 2 project has filed a claim against South Korea's Hanwha Ocean for about $1.02 billion in damages, citing the termination of shipbuilding contracts due to US sanctions on Russia.

The claim is related to three tankers that were ordered by Sovcomflot and are valued at 1.37 trillion won, or around $1.02 billion. Hanwha Ocean had previously said the three tankers were canceled because of the sanctions imposed over Ukraine.

The Arctic LNG 2 project, led by Novatek, is a major liquefied natural gas (LNG) project in Russia's Arctic region and has faced complications due to US sanctions. The project began production in December 2023, but cargo deliveries to end-users, all in China, did not begin until August 2024.