Yangzijiang axes USD 180 million tanker deal over allegations of buyer evading US sanctions
- Published
by Admin
Singapore-listed Yangzijiang Shipbuilding (Holdings) Ltd on Saturday (27 September) said its three subsidiaries had terminated shipbuilding contracts, valued at USD 180 million, for four MR tankers by an undisclosed buyer.
The Chinese shipbuilder said its subsidiaries Jiangsu Yangzijiang Shipbuilding Group, Jiangsu New Yangzi Shipbuilding and Jiangsu Yangzi Xinfu Shipbuilding terminated the contracts for an aggregate of four 50,000 DWT MR oil tankers.
The vessels were originally scheduled for delivery from 2026 to 2027.
Yangzijiang Shipbuilding said the subsidiaries have terminated the contracts following certain critical information just disclosed by the buyer, which had not been previously known to the subsidiaries, despite earlier extensive due diligence on the buyer and its shareholder.
“This critical information contains allegations that the buyer’s sole shareholder was involved in a scheme to circumvent US sanctions laws and regulations,” Ren Letian, Executive Chairman and Chief Executive Officer, said in a regulatory filing.
“In light of these developments and based on legal advice that they have received, the subsidiaries have determined that the buyer is in anticipatory repudiatory breach of the contracts.
“Alternatively, the contracts have been frustrated as a result of the supervening illegality associated with the buyer’s payment obligations. Accordingly, the contracts have been terminated, and the subsidiaries have reserved all of their legal rights against the buyer.”
Yangzijiang Shipbuilding noted that construction had commenced for just one vessel, for which an additional 10% instalment of about USD 4.48 million was collected.
The group added the termination of the contracts is not expected to have a material impact on the net tangible assets and earnings per share of the Company and the Group for the current financial year ending 31 December 2025.
Photo credit: Yangzijiang Shipbuilding
Published: 30 September, 2025
Related Topics:
