French engineering company in containment systems for LNG shipping and storage GTT has announced the cessation of its activities in Russia following an in-depth analysis of European sanction packages N° 8 and 9 prohibiting engineering services with Russian companies.
The French firm is involved in Russia in the tank design of 15 ice-breaking LNG carriers under construction by the Zvezda Shipbuilding Complex, as well as in the design of three GBSs1 for Saren B.V.2.
In fact, as of 8 January 2023, the contract with Zvezda will be suspended and GTT’s interventions will be limited, on the two most advanced LNG carriers, to ensure the safety of the projects and the integrity of the technology, in compliance with the international sanctions in force.
According to GTT, the decision to stop activities in Russia will have a financial impact on its results mainly from 2023. GTT’s order book will no longer include projects in Russia in the future. In addition, from 2023 onwards, the company’s annual targets will exclude the revenues and earnings before interest, taxes, depreciation, and amortization (EBITDA) that would be generated by the last services in progress in Russia.
