The escalating package of punitive economic measures against Russia has raised serious concerns for foreign shipowners who arranged lease financing deals with the foreign leasing platform of the country’s largest state-owned lessor.
TradeWinds must stress that neither the Moscow-based State Transport Leasing Company (GTLK) nor its Dublin-based subsidiary GTLK Global and affiliates have been sanctioned.
However, as the Ukraine crisis worsens, the economic retaliation from governments around the world is ratcheting up.
Given GTLK’s ownership links to the Russian ministry of transport, there is a risk that it may at some point be in the sanctions firing line.
GTLK does not hide its links to the Kremlin, describing itself on its website as a “tool for handling governmental tasks and implementing national projects”.
Ship leasing is a small part of a portfolio that is heavily orientated towards aircraft and railway equipment.
Since targeting foreign shipping companies after setting up its Irish-registered international arm GTLK Global in 2012, the company has built up a moderate fleet, albeit not to the same scale as many Chinese lessors.
GTLK in Moscow has a sizeable fleet of coastal general cargo ships, ferries and dredgers that are leased to domestic Russian operators.
Data provided by GTLK Global in September 2021 listed a fleet of 20 bulk carriers seven cruise/ ferry newbuildings, a tanker, and a smattering of tugs and other special-purpose vessels and floating cranes.
Since then, GTLK Global’s Hong Kong office signed a letter of intent with Mitsui OSK Lines to sell a 49% stake in two LNG floating storage unit (FSU) newbuildings to the Japanese shipping giant.
The two FSUs, each with a storage capacity of about 360,000 cbm, are currently on order at Daewoo Shipbuilding & Marine Engineering. Once delivered, they will go on bareboat charter to Arctic Transshipment — a joint venture between Russia’s Novatek and TotalEnergies of France.
TradeWinds understands that MOL is still in negotiations for its participation in this project and so does not expect any material influence on its business in connection with the units.
Another leasing deal that GTLK Global signed at the end of 2021 was for a pair of 8,200-teu container ships that were bought from Minsheng Financial Leasing. Managed out of Germany, the two ships are on long-term charter to Mediterranean Shipping Co.
Almost all of the bulk carriers are leased to Cypriot-registered companies. Nine handysizes and one handymax are operated by Pola Maritime, which is described by Clarksons as Russian, although it is based in Cyprus.
One of the ships that Pola leases from GTLK, the 38,600-dwt Pola Ariake (built 2019) has already been seized by French authorities, alongside a ship leased by a Russian GTLK entity.
GTLK is also linked to the revived Swan Hellenic Cruises, which is leasing three polar expedition cruise ship newbuildings. The first, the 10,600-gt SH Minerva, was delivered by Helsinki Shipyard in 2021. The second, the SH Vega, is due for delivery this year.
Exiting leases
Leasing sector sources said that if GTLK Global were sanctioned, ownership of the vessels would remain with the lessor while sanctions would default the lease.
They suggested that companies with ships tied to Russian-linked lessors are scrambling to find alternative sources of funding to get the vessels out of the leases.
GTLK’s foreign shipping clients were reluctant to speak on the record with TradeWinds, citing the sensitivity of the situation.
Nevertheless, some expressed strong concern, and said their legal teams were actively investigating potential legal implications.
TradeWinds understands that some companies negotiated clauses allowing them to take the vessels out of the GTLK lease if sanctions were applied. GTLK was said to be “fairly understanding” on this type of pre-agreed structure negotiated at a time when tensions between the US and Russia were already high.
Swan Hellenic said it has contingency plans in place that can be swiftly enacted should future developments require it. These, it said, have been structured taking a spectrum of different options into account.
While the company declined to provide further details, it said they provide “strong and transparent solutions” regarding both the ownership and financing of the ships.
Norway’s Havila Kystruten appears to already be exiting its four 15,800-gt cruise ferries under construction in Turkey from GTLK leases, at least according to information provided by IHS Markit.
Data in IHS’ International Ships Register shows that ownership of the three newbuildings that are still under construction at Tersan Shipyard in Turkey were switched in February from GTLK to special-purpose vessel-owning vehicles owned by Havila Holdings.
The fourth ship, the already delivered Havila Capella (built 2021), remains under GTLK ownership in the IHS ships register.
TradeWinds approached Havila Kystruten and GTLK Global for comment.
This article has been edited since publication to remove references to White Lake Shipping and WL Shipping. Neither White Lake nor W.L. Management BV are Russian-backed entities, with the ultimate beneficial owners being Belgian and Spanish domiciled, according to company representatives. TradeWinds regrets any misunderstanding.
