Danish shipyard is last to continue servicing Russian LNG vessels after France’s Damen Shiprepair Brest halted maintenance work in August 2025.

What: Denmark’s Fayard shipyard is set to receive the Boris Davydov LNG tanker which serves Russia’s Yamal LNG facility.

Why: With the vessel sailing under the Cypriot flag and not owned, managed or certified by a Russian entity, a loophole has allowed Russian LNG terminals to have tankers serviced.

What Next: It is expected the shipyard will service six Arc7 LNG vessels before an EU ban comes into force in January.

The Fayard shipyard in Odense, Denmark is slated to accept another Russian-linked LNG vessel this summer, the Kyiv Independent reported on August 27.

The Boris Davydov vessel will be the third vessel to get maintenance work carried out by the shipyard this summer. A total of six Arc7 LNG tankers are expected to be serviced by the shipyard ahead of an EU ban which comes into force in January.

The Fayard shipyard remains the only European shipyard to continue providing servicing to Russia-linked LNG tankers. France’s Damen Shiprepair Brest ceased maintenance work on Russia-linked vessels in August 2025.

The shipyard has come under heavy criticism for continuing to service the vessels despite the EU’s attempts to turn its back on Russian LNG and pipeline gas. Among those criticising the shipyard, were Denmark’s Prime Minister Mette Frederiksen, who called it “inconceivable”.

Sanctions packages passed by the bloc have outlawed short-term LNG contracts with Russia since April 25. Similarly, a ban on importing Russian LNG will come into force on January 1. And on September 30, 2027, it will become illegal to import Russian pipeline gas, including for Hungary and Slovakia.

With the Russian-linked vessels sailing under foreign flags and not owned or managed by Russian entities, the LNG tankers have been able to continue to receive service through this loophole.

However, the EU’s 20th sanctions package will change this as beginning in January, it will prohibit technical assistance, financial services, and brokering on foreign-owned LNG vessels that operate in Russia.

According to German NGO Urgewald, the Boris Davydov has delivered at least 50 cargoes of super-chilled fuel from Russia’s Yamal LNG facility since it was serviced last at the Fayard shipyard in September 2023, which is worth about $2.2 bn.

Novatek’s Arctic LNG 2 facility has been heavily sanctioned by the West. In late August, French supermajor TotalEnergies completed the transfer of its 10% interest in the facility located in northwestern Siberia to NordLine, a subsidiary of Novatek.

However, Yamal LNG, which is also controlled by Novatek, Russia’s largest independent energy producer, boasts a production capacity of 17.4 mn tonnes per year (tpy), has largely avoided Western sanctions.

In fact, imports from Yamal LNG soared to a record high in the first half of 2026. Countries from the bloc received 136 cargoes containing 9.97 mn tonnes of super-cooled gas between January and June. It marks a 16% increase year on year, according to data from commodities intelligence group Kpler.

Moreover, despite tough talk by Brussels of weaning itself off Russian gas, over 97% of Yamal's LNG deliveries during the period went to EU ports. Yamal LNG, located in Sabetta, on the Yamal Peninsula, accounts for more than 60% of Russia’s LNG exports.

It also marks another watered-down attempt at tightening the screws on Moscow. In July, Brussels yielded to Athens in an attempt to ban the transport of Russian LNG.

Greek politicians argued that forcing European shipping firms to halt delivering Russian LNG to third-country buyers would only result in the transfer of business to China, Japan, and other countries while not lowering Russia’s export revenues.

And as Athens dragged its heels, stalling the EU’s 21st sanctions package against Russia, Brussels eventually caved in to allow Greece’s Dynagas to continue shipping Russian LNG, in order to push through the sanctions package.

Dynagas owns 27 LNG tankers and vessels linked to the company moved 57 cargoes and 4.14 mn tonnes out of the Arctic plant between January and July, representing 35% of Yamal’s total exports. Fifty-three of those cargoes, 3.86mn tonnes, went to EU ports. Applying a monthly Dutch Title Transfer Facility (TTF) benchmark to the volumes, the EU-bound LNG cargoes would possess an indicative gross value of €2.35 bn ($2.72 bn).

Small victories were made in that the bloc did impose a limit on volumes, which were capped at 2025 levels and Athens promised to extend the price cap on Russian oil for one year to $44.10 a barrel, less than half of current prices. The deal runs for 12 months, however it could be renewed.

Indeed, the EU has been disjointed and largely ineffective in administering harsh sanctions on Russia. Workarounds, loopholes, and granting exceptions to member states have all served to significantly water down the EU’s attempts to weaken Russia’s LNG sector, which plays a critical role in financing its war in Ukraine.