From tankers to cosmetics: what is happening with the economic relations between Russia and South Korea?

Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to the Business FM radio station that the South Korean shipyard intends to terminate the contract for the construction of gas carriers for the Arctic LNG-2 project.

South Korea has not imposed sanctions against Russia and Russian companies, but the actions of its business in Russia raise a lot of questions. The main one is the termination of the contract for the construction of gas carriers for the Arctic LNG-2 project, which is unprofitable for the Korean shipyard itself.

Aleksey Gromov, Energy Director of the Institute for Energy and Finance:

“Everything is very complicated, because the Russian shipyard Zvezda works with ice-class vessels necessary for the oil and gas complex, but each type of vessel of this class is a serious challenge in terms of import substitution. We can do some things at our shipyard in the shortest possible time, but if we talk about building our own gas carriers, this is an issue that will take more time, at least three to five years. We simply do not have Russian competencies in the construction of our own gas carrier vessels.”