[Alpha Biz=(Chicago) Reporter Kim Jisun] Samsung Heavy Industries has stopped building block equipment for icebreaking liquefied natural gas (LNG) carriers that had been carried out at Russian shipyards in the aftermath of the Russia-Ukraine war.

According to the industry on the 27th, Samsung Heavy Industries stopped manufacturing ship blocks and equipment for 10 of the 15 LNG carriers contracted with the Zvezda shipyard in Russia.

Samsung Heavy Industries said the production of blocks and equipment for the construction of five ships is in the final stage, and the production of blocks and equipment for the remaining 10 vessels has not started yet. However, the contract has not been canceled yet.

According to the shipbuilding industry, Samsung Heavy Industries chose to stop the construction as the Zvezda shipyard is likely to be subject to special sanctions by the U.S. Treasury Department's Foreign Assets Control Authority (OFAC) this month, citing Russia's invasion of Ukraine. On the SDN list, all assets of the company are frozen and transactions with foreign countries are prohibited.

 

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