GTT Ceases Its Activities in Russia

French engineering group Gaztransport & Technigaz (GTT) said on Monday it was stopping its activities in Russia after analyzing the latest European sanction packages which include a ban on engineering services with Russian firms.

The group said its contract with Russian shipbuilding company Zvezda for 15 ice-breaking liquefied natural gas (LNG) carriers would be suspended as of Jan. 8 and activities limited on the two most advanced ones.

Meanwhile, terms of GTT's exit from the Gravity Based Structure (GBS) projects with Saren B.V - a joint-venture between Renaissance Heavy Industries Russia and Saipem's SPMI.MI Russian subsidiary - are being finalised.

"These elements will have a financial impact mainly from 2023," GTT said in a statement, adding that its order book would no longer include projects in Russia.

GTT added that annual targets will exclude revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) generated by the last services in progress in Russia from 2023 onwards.

As of October 2022, revenues of Zvezda's LNG carriers accounting for 74 million euros ($78.86 million) remained to be recognised by 2025 and 12 million euros from GBSs by 2027, a total order book exposure of less than 6%, said GTT.

($1 = 0.9384 euros)

(Reuters - Reporting by Dina Kartit, edited by Tomasz Janowski and Louise Heavens)