Shipping Giant MOL Seeks Support From Japanese Government Over EU Sanctions

Japanese shipping company Mitsui OSK Lines Ltd. has approached the Japanese government for assistance after the European Union unexpectedly imposed sanctions on three of its liquefied natural gas (LNG) tankers connected to a Russian energy project.

The European Council announced its 17th round of sanctions last week to increase pressure on Russia and close loopholes in previously imposed restrictions. As part of this move, three Mitsui OSK ships, North Moon, North Ocean, and North Light, were added to the sanctions list.

These vessels are managed by Mitsui OSK and were recently involved in transporting LNG from the Yamal LNG project in Russia. While the Yamal project itself is not under any sanctions, the tankers loaded LNG cargoes that were transshipped near the Russian port of Murmansk. This is a common practice where ice-class vessels bring the cargo from the Yamal plant, and other tankers pick it up at Murmansk for further delivery.

The company’s CEO, Takeshi Hashimoto, expressed disappointment over the decision. According to him, the firm had always understood that the Yamal LNG project was not subject to sanctions, so the sudden targeting of the vessels came as a shock. He said that the company is now reaching out to the EU through multiple channels, including diplomatic efforts via the Japanese government.

Hashimoto stated that some of the sanctioned vessels are already loaded with LNG, and Mitsui OSK plans to unload them as soon as possible. However, he acknowledged that these ships are likely to remain out of use for an indefinite period due to the sanctions.

He also mentioned that LNG demand had surged earlier this year. From January to March, LNG stockpiling increased due to concerns about possible tariffs from U.S. President Donald Trump. Although demand dropped in April, it rose again in May after tensions between the U.S. and China eased. Mitsui OSK expects this strong demand to continue through May and June.

Mitsui OSK is now dealing with a tough situation as it tries to maintain stable LNG supply operations amid sudden geopolitical issues. The involvement of the Japanese government suggests that the issue has escalated beyond corporate negotiations and may require diplomatic resolution.

Reference: Bloomberg

Source: Maritime Shipping News