Finnish Shipyard Hit by Sanctions on Russia as European Bank Closes Accounts

An icebreaker leaving port

In an instance of Western sanctions striking closer to home, European lender Nordea Bank is closing the bank accounts of a Finnish shipyard after a major Russian shipbuilder that owns part of the company was blacklisted by the U.S., a Finnish news outlet reported.

Finland's Arctech Helsinki Shipyard is part owned by Russia's state-owned United Shipbuilding Corporation, or USC, which was blacklisted by the U.S. last month when the West stepped up its sanctions against Moscow over Russia's support for separatist rebels in war-torn eastern Ukraine.

"Nordea is an international bank with offices in the U.S., as such it must comply with U.S. sanctions," the bank told Yle news.

Arctech is also partially owned by Korean shipyard holding company STX.

Yle said that Esko Mustamyaki, the head of Arctech confirmed that their Nordea accounts had been closed, and said they do not expect this to impact the firm's orders, which include civilian icebreakers for use in the Arctic.

See also:

Almost Half of Finnish Companies Hit by Russia Sanctions

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