Swan Hellenic’s second cruise ship also hit by sanctions

2022-06-27T16:18:14+00:00 June 27th, 2022|Finance|

Due to its financing allegedly breaking US and EU sanctions, Swan Hellenic’s 10,600 gt ’SH Vega’ has been put up for sale by the shipbuilder.

Helsinki Shipyard has advertised the vessel for sale under the name of Hull No 517 on an ‘as is, where is’ basis. Bids were due by 24th June.

‘SH Vega’ is a sistership of ’SH Minerva’, which was delivered late last year by the Helsinki Shipyard.

The sisterships, along with a third cruise ship still under construction at Helsinki, were financed by Swan Hellenic with Russian leasing company GTLK.

Under the terms of the finance, the vessels were to be operated under long-term charters to Swan Hellenic.

Last April, the EU and the US extended sanctions against Russian entities, including GTLK and its subsidiaries.

Swan Hellenic had earlier announced that it would exercise purchase options in the contracts for the cruise ships but was still reported to be seeking court authorisation to complete the acquisitions.

“As a consequence of the sanctions announced in April, the leasing company GTLK Europe defaulted on the payments as the per newbuilding contract of NB 517 ’SH Vega’. Moreover, all assets belonging to GTLK should be frozen in the EU,” Swan Hellenic said in a statement, adding that GTLK would not be able to take delivery of the ship.

It was later believed that Swan Hellenic had made a bid for the ship.