Asia/Pacific News
Yangzijiang Cancels $180 Million Tanker Deal as Buyer Faces Sanctions Claims
Singapore-listed Yangzijiang Shipbuilding (Holdings) said three of its subsidiaries have terminated contracts worth $180 million for four tankers after the buyer's sole shareholder was linked to alleged US sanctions violations.
The 50,000 DWT vessels were due for delivery between 2026 and 2027, the shipbuilder said in an announcement on Saturday.
"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," it said.
According to Yangzijiang, this information "contains allegations that the Buyer's sole shareholder was involved in a scheme to circumvent U.S. sanctions laws and regulations."
Based on legal advice, Yangzijiang said its subsidiaries had concluded the buyer was in anticipatory repudiatory breach of the contracts.
Alternatively, it noted that the contracts had been frustrated due to "supervening illegality" linked to the buyer's payment obligations.
The shipbuilder confirmed it received $18 million in deposits, along with an additional $4.48 million after work commenced on one vessel. The firm has not disclosed the details of the buyer.
Yangzijiang said the cancellations would not materially affect its 2025 earnings.
