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Helmsman: Practical tips for bunkering, commodities sectors on compliance with Russian sanctions

Maureen Poh, Director of Helmsman LLC, explains what recent sanctions on Russia mean for the shipping and commodities sectors and offers recommendations to help entities reduce exposure.

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The following article explaining what recent sanctions on Russia mean for the shipping and commodities sectors has been written by Maureen Poh, FCIArb, a Director at Helmsman LLC. Poh has significant experience with energy-related shipping and commodity-related matters, as a Singapore and English qualified lawyer.  She is hailed in Chambers 2022 as a well-regarded lawyer in the market; Legal 500 lauds her commodities trading work in both contentious and advisory aspects and describes her as “a key name for charterparty disputes, carriage of goods by sea and cargo claims”:

The US, EU and their allies have imposed sanctions against Russia in the current Ukraine crisis.  The list of sanctions grows longer by the day.  What does this mean for shipping, in particular the bunkering and commodities sectors? The Russia sanctions landscape is changing rapidly.  You need to keep a close eye on it.

Sanctions snapshot

So far there appears to be no blanket prohibition on trading oil or commodities with Russian entities.  What is in place are restrictions relating to foreign financing and new equity issued by thirteen Russian state-owned enterprises and entities including Sovcomflot, oil producer and refiner Gazprom Neft and natural gas company Gazprom, amongst others.  Rosneft has been on the US Sectoral Sanctions Identifications List (SSI List) for some time now.

Of particular significance are sanctions relating to the financial sector.  The US, and to a lesser extent the EU and UK, have imposed a variety of sanctions against identified banks, such as blocking their ability to do business and freezing their assets blocking sanctions.  Interestingly, the US has in place a waiver for “energy-related” transactions with some of the sanctioned Russian banks until June 2022.  “Energy related” is defined broadly: included are extraction, production and refining of any petroleum products as well as other commodities capable of producing energy, such as coal, wood, agricultural products for biofuels, uranium, and electricity.  This is perhaps an acknowledgement of Russia’s importance to the global supply of energy commodities.

Separately, and more importantly to foreign parties dealing with Russian counterparts, is the cutting off of a number of Russian banks from the main international payment system, SWIFT.  The banks are yet to be identified.  SWIFT does not actually move money – it is a secure platform for banks, acting as a middleman to verify information on transactions by providing secure financial messages services between banks.  It is very extensively used as a way to facilitate payment, particularly by way of telegraphic transfer or letter of credit.

An increasing number of Russian individuals have also been placed on the US Specially Designated Nationals and Blocked Persons List (SDN List) or under EU sanctions regulations.

What does this mean for you? 

While there are currently no sanctions by governments or international organisations over Russian energy commodities, it is likely that the private sector will be very cautious in dealing with cargoes linked to Russia or engaging with Russian entities, as there is always the risk of further sanctions being imposed.  The risks of doing business with Russia may become too much for many companies to take on, even without sanctions.

For instance, bunker purchasers might want suppliers to warrant that bunkers supplied contain no Russian-origin material.

Payment might be a big issue.  Companies will have to find alternative ways for payment, for instance over the telephone or fax.  This will obviously have to be coordinated with the banks.

Business dealings with Russian entities will also be scrutinised.  Recently, France seized a ship that is allegedly linked to an individual on the SDN List.

What should you do? Practical tips

  • Check your contracts: Is there a Russian element in the performance of the contract? Are there any clauses which you or your counterparty can rely on? This might help you reduce your exposure to sanctions and to get out of the contract.  Conversely, it might enable the counterparty to not perform their obligations under the contract. This may have a knock-on effect on your obligations to third parties, so take note.
  • Check your counterparts: It is not sufficient to check that your counterparty is on the SDN List or subject to EU sanctions.  Majority interests in the company, holding company, indirect ownership and control, are also relevant.  I wrote about this in more detail in an earlier article.
  • Your financiers might be particularly sensitive to any dealings with Russia, even uncertain and tenuous ones. If in doubt, check with your banks as soon as possible.
  • Continue to closely monitor the sanctions situation. What works today might not work tomorrow.

Maureen Poh can be contacted at:

Phone: +65 6950 8667
E-mail: [email protected]

 

Photo credit: Helmsman LLC
Published: 1 March, 2022

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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