Russian Helsinki shipyard can cost taxpayers millions News
The Finnish state-owned finance company Finnvera has guaranteed loans of more than EUR 200 million for the construction of two cruise ships at the plant.
Financial difficulties at the Russian-owned Arctech shipyard in Helsinki could lead to losses of millions of euros, raising the tab for a Finnish taxpayer.
The Finnish state finance company Finnvera has guaranteed loans of more than EUR 200 million to finance the construction of two cruise ships at the shipyard.
The plant has been wholly owned by the Russian state-owned United Shipbuilding Corporation (USC) since 2015, and economic sanctions imposed on the EU by the EU and the US following its invasion of Ukraine could affect its operations.
Ships manufactured by the yard may also be subject to an EU export ban.
“In general, I can say that the national situation in Russia has changed significantly. Finnvera stopped issuing export guarantees to Russia on February 22 [Russia invaded Ukraine on 24 February]. However, I cannot comment on individual cases, “says Finnvera ‘s Business Director From Jussi Haarasilta told Yle.
According to Finnvera own definition (switch to another service)An export guarantee is a guarantee given to a lender to facilitate the provision of financing for working capital that benefits “Finland’s economic development… serves Finland’s interests”.
However, if the original borrower defaults, the guarantor is liable for the loan.
Haarasilta told Yle that the issuance of export guarantees has also ended in Ukraine and a similar decision related to Belarus was made in the summer of 2021.
Finnvera must comply with financial confidentiality regulations in its operations, which is why the company cannot provide more detailed information on matters concerning the Helsinki shipyard.
Although USC is not directly subject to sanctions, the recession in the Russian economy brought about by the sanctions will also affect Helsinki Shipyard’s operations.
The City of Helsinki is also considering terminating the company’s lease in Hietalahti, Helsinki.