Russian Far East News

Russia must boost production facilities for the construction of ice-breaking vessels in order to meet its targets for increasing trade via the Northern Sea route, Moscow's official in charge of Arctic development has said.The government has been in talks with India and China on such projects, Alexei Chekunkov, the head of Russia's Ministry for the Development of the Russian Far East and Arctic, told RBC media.Russia has long viewed the route, which runs from Murmansk near Russia's border with Norway eastwards to the Bering Strait near Alaska…

Scott R. Atkinson has joined winch and deck machinery manufacturer Markey Machine as vice president of business development. Atkinson’s previous business development roles were at the former Rapp Hydema (now part of MacGregor), AdvanTec Marine and Arctic Storm, as well as through his consulting firm, Jaeger Marine. Prior new business included advances into offshore wind, offshore oil and gas, research vessels, and varied marine business in the Russian Far East.Blaine Dempke, CEO of Markey Machine, said, “Scott adds an important aspect to our customer relations and business development efforts.

Russian nuclear-powered submarines fired cruise missiles in the Arctic on Friday as part of military drills designed to test Moscow's readiness for a possible conflict in its icy northern waters, the defense ministry said.The drills, named Umka-2022, took place in the Chukchi Sea, an eastern stretch of the Arctic Ocean that separates Russia from the U.S. state of Alaska.Russia sees its vast Arctic territory as a vital strategic interest and has been building up its military capabilities in the region for years…

Russia is bracing for a sharp decline in cargo flows and a deficit of containers after major international container shipping lines halted operations in the country due to Moscow’s military campaign in Ukraine, two Russian executives said.The world’s three largest container shipping lines, Denmark’s Maersk, France’s CMA CGM and Swiss-based MSC, have suspended their bookings to and from Russia after Moscow sent troops into Ukraine on Feb. 24, sparking a flurry of Western sanctions.The…

China, the global oil market's lifeline this year, has stepped up purchases from exporters like Russia, the United States and Angola in recent weeks, while buyers elsewhere pare orders as coronavirus infections surge and fresh lockdowns are put in place.China, the world's largest importer of crude, is the only major buyer expected to see increased oil demand this year as the pandemic destroyed consumption globally.With China's imports expected to reach 12 million barrels per day (bpd) next year…

Finland-based propulsion specialist Steerprop has recently won a contract to deliver azimuth units as the main propulsion and steering system for a shallow-draught ice-breaking vessel being built for offshore oil operations in the Russian Far East.The 75.9 meters long, 14 meters wide vessel is being built by the Dutch shipyard Royal Niestern Sander for the Russian companies Mercury Sakhalin and Pola.The walk-to-work vessel will operate all year round in harsh ice conditions, transferring service technicians and equipment to and from offshore platforms off the Sakhalin Island.

Dutch shipbuilder Royal Niestern Sander has ordered Schottel thrusters for what has been described as the world's first shallow-draught ice-breaking walk-to-work vessel, targeted for operation at the Russian Far East.Under the order from a joint venture between the Russian companies Mercury Sakhalin and Pola, Royal Niestern Sander is constructing the 75.9-meter-long, 14-meter-wide vessel that will serve the offshore oil and gas installations near the Sakhalin Island, Russia.After ordering an ice-strengthened gangway for the vessel form Ampelmann in June…

Rare cargoes of diesel from China and South Korea have started to arrive in Russia due to a quirk in Russia's tax system which is making fuel shipments from abroad more profitable, data from traders and Refinitiv Eikon showed on Thursday.Because of a local tax scheme, Russian oil firms are due to make higher payments to the government despite a slump in oil prices due to excess supplies and the economic fallout from the coronavirus pandemic.That means the companies have little incentive to cut domestic retail prices for gasoline and diesel.But with prices lower on the global market…

Russia's Zvezda Shipbuilding Complex said it has launched its very first newbuild, a 114,000 dwt dual-fuel tanker for oil company Rosneft.The milestone vessel Vladimir Monomakh is the first Aframax ever to be built in Russia and is one of 12 currently on order at the yard, which is owned by a Rosneft-led consortium.The Vladimir Monomakh was launched using Zvezda's unique Vympel floating transfer dock, which enables the longitudinal launching of ships up to 300 metres in long and…

Smart LNG LLC, a joint venture of Sovcomflot and Novatek, signed an agreement with VEB.RF Group for lease financing of four Arc7 icebreaking LNG carriers for the Arctic LNG 2 project. At the same time, SMART LNG signed long-term time charter agreements for these tankers with Arctic LNG 2 LLC.The vessels will be built at Zvezda Shipbuilding Complex in the Russian Far East. Earlier, in October 2019, SCF Group signed financing and long-term time charter agreements for the lead vessel in this series.The design of the series draws upon the experience of operating Christophe de Margerie, the world’s first icebreaking LNG carrier, introduced in 2017. This led to the integration of various advanced engineering solutions into the design.

SCF Group and VEB.RF Group, a Russian financial institution, signed an agreement for lease financing of the lead ship in a series of icebreaking LNG carriers expected to be built to serve the Arctic LNG 2 project.At the same time, SCF Group and NOVATEK Group signed a long-term time charter agreement for this tanker.The vessel will be constructed at Zvezda Shipbuilding Complex in the Russian Far East. She is designed for year-round operations in the challenging ice conditions of the Kara Sea and The Gulf of Ob and will be able to sail independently through ice over two meters thick.All the LNG carriers in the new series will be operated under the Russian flag. The Russian Maritime Register of Shipping (RS) will provide technical supervision during the construction of the vessel series.

Russia's largest independent natural gas producer Novatek has signed a cooperation agreement with the Government of the Chukotka autonomous area, situated in the Russian Far East.As per the agreement, Novatek will consider supply LNG for use in power generation, and as fuel for transport and mining operations."The Russian Federation fully supports the development of the Northern Sea Route as a yearly navigational route connecting the Asian Pacific and European markets. When our LNG transshipment complex in the Kamchatka Territory and the Arctic LNG 2 project become fully operational, the  ice-class LNG tankers will navigate along the Arctic coast of the Chukotka Autonomous Region year-round and almost daily…

Russian shipping company PAO Sovcomflot (SCF Group) has achieved significant CO2 emission cuts since taking delivery of the first of its “Green Funnel” LNG-fueled Aframax crude oil tankers last year.PAO Sovcomflot (SCF Group) has accumulated data showing that using LNG as a primary fuel for these large-capacity tankers enabled a 30 per cent reduction of CO2 emissions compared with similar vessels powered by traditional heavy fuel. This reduction exceeds the original design target values.Igor Tonkovidov, Executive Vice President and CTO/COO of Sovcomflot, delivered a report on the first results of operating ‘Green Funnel’ series tankers…

Russian maritime shipping company specializing in petroleum and LNG shipping Sovcomflot has chosen Orange Business Services to deploy an advanced Maritime VSAT solution on eight vessels.According to a press release from the the business services arm of Orange S.A., this initial rollout will keep the ships connected even when operating on the high seas, improving safety and optimizing navigation in challenging conditions.In addition, this solution will make it easier for crews to stay in touch with friends and family, which is essential to keep staff morale high.The first ships to receive the solution during this initial rollout phase are the Arctic shuttle tankers Mikhail Ulyanov and Kirill Lavrov, which are the largest oil tankers built in Russia.

Russian shipping company FESCO Transportation Group announced that as part of the development of FESCO Fast Forward services it is optimizing the rotation and changing the names of regular shipping lines from China and the Republic of Korea to Russia.Transportation services between China and Russia will be carried out under the brand FESCO China Express, and between the Republic of Korea and Russia - under the brand FESCO Korea Express.FESCO China Express will operate on two routes: Vladivostok-Vostochny-Shekou-Yantian-Xiamen-Ningbo-Shanghai-Vladivostok and the fast route - Eastern Arrow – Vladivostok-Qingdao-Shanghai-Ningbo-Vladivostok.

Russian Zvezda Shipbuilding Complex has increased its portfolio of orders by 42 percent in the second half of 2018.The shipbuilding and engineering complex in the town of Bolshoy Kamen in the Russian Far East said that currently, it has a total of 37 vessels in its orderbook and is in the process of securing new contracts.Zvezda’s anchor customer is Rosneft, which placed an order for 26 vessels, including 12 Arc6 and Arc7 ice-class tankers, 4 ice-class multi-purpose support vessels, and 10 Aframax tankers.Gazprom ordered 3 support vessels, 1 vessel for transporting drilling crews, and 1 multi-purpose service vessel for offshore production unit.Rosmorport ordered 1 shallow-draft icebreaker.

Russian oil giant Rosneft said that China National Chemical, known as ChemChina, agreed to purchase 2.4 million tons a year of crude oil. That amount is equivalent to 6% of Rosneft's total exports to China in 2017.Crude oil from Eastern Siberia will be transported to a Russian Far East port by pipeline and will reach China via Russia’s Pacific port of Kozmino.The deal allows for increasing crude oil supplies to China’s market, which is a strategic one for Rosneft, the Russian company said in press release."Conclusion of the contract will lead to an increase in direct supplies of oil to the strategic Chinese market and ensure a guaranteed cost-effective export channel for the Company's crude sales," said the release.ChemChina is one of the largest petrochemical companies in the world.

German Chancellor, Angela Merkel and Mecklenburg-Vorpommern’s Prime Minister, Manuela Schwesig were among those in attendance at a keel laying ceremony for the world’s largest polar-class expedition yacht held Tuesday in Germany.The ceremony marked a construction milestone for the 20,000 gross ton luxury expedition yacht Crystal Endeavor, currently being built for Crystal Cruises at MV WERFTEN's Stralsund shipyard.“The keel laying of Crystal Endeavor here in my political hometown of Stralsund marks a special moment for me that is doubly significant…

Shares of small Japanese shippers jumped this week after the historic summit between U.S. President Donald Trump and North Korean leader Kim Jong Un sparked hopes of news business ties with the reclusive country.Japanese retail investors are snatching up shares of the firms that may benefit from a potential thaw between Tokyo and Pyongyang, even though the Japanese government has been a staunch supporter of "maximum pressure" on North Korea.Shares of Rinko Corp, a marine transportation company…

Mitsui O.S.K. Lines (MOL) signed a Memorandum of Understanding (MOU) with the Far East Investment and Export Agency (FEIA) under the Ministry of the Russian Federation for the Development of the Far East (MINVR) to cooperate with each other in the development of the Northern Sea Route and the Russian Far East. MOL has been participating in the Yamal LNG Project, which is the world first large scale energy project that exports cargoes through the Northern Sea Route, and MOL's first ice-breaking LNG carrier for the project is slated to go into service at the end of March, following ice trials (ice-breaking sea trials) in Arctic waters.

Mitsui O.S.K. Lines, Ltd. signed a Memorandum of Understanding with the Far East Investment and Export Agency under the Ministry of the Russian Federation for the Development of the Far East  to cooperate with each other in the development of the Northern Sea Route and the Russian Far East. MOL has been participating in the Yamal LNG Project, which is the world first large scale energy project that exports cargoes through the Northern Sea Route, and MOL’s first ice-breaking LNG carrier for the project is slated to go into service at the end of March, following ice trials (ice-breaking sea trials) in Arctic waters (*1) . MOL has also been proceeding with a feasibility study aimed at establishing an LNG transshipment terminal and marketing complex in the Kamchatka area with PAO Novatek…

Damen Shipyards Group said it has secured an order with German heavy lift company Combi Lift to build a total of 19 specially customized shallow draught vessels. The vessels will be used to transport oversized and heavy lift cargo for the Gazprom Amur Gas Processing Plant Project in the Russian Far East. The multiple vessel order comprises four Multi Cats 2608SD, four Pusher Tugs 2612SD, seven Stan Pontoons 8916SD and four Side Floaters 8605SD. Combi Lift’s role in the Gazprom Amur Gas Processing Plant Project will be to transport over 176…

Built by Arctech Helsinki Shipyard, the Russian flagged Gennadiy Nevelskoy (deadweight 3,000 metric tons) will home port in Saint Petersburg and was commissioned by SCF under a long-term agreement with Sakhalin Energy. She is the first of four vessels for operations at the Sakhalin-2 project; the other three are ice-breaking standby vessels (IBSBVs) that have a smaller deadweight (2,000 metric tons), but offer enhanced functionality and a higher people-on-board capacity. The agreement between Sovcomflot and Sakhalin Energy…