By Maiya Keidan
Canadian firm Davie Shipbuilding has completed the purchase of Helsinki Shipyard, maker of Arctic icebreaking vessels, from Russian-owned Algador Holdings after securing regulatory approval, Davie said on Friday.
Regulators said the deal was not in violation of sanctions on Moscow, according to a source with knowledge of the deal.
While the terms of the purchase agreement are confidential, the transaction was funded by a combination of DavieΓÇÖs own funds and by 77 million euros ($81.77 million) of financing from the Quebec government, according to a statement from Davie.
Privately-owned Davie announced the purchase of the Finnish company months ago. The deal will help Canada deliver on its C$8.5 billion ($6.2 billion) national shipbuilding strategy program.
Algador Holdings is owned by Russian businessmen Rishat Bagautdinov and Vladimir Kasyanenko, who is also a Belgian citizen. Quebec-based Davie worked with regulators in Finland, the EU, Canada, the UK and the U.S. to ensure the deal was not in violation of sanctions related to Russia’s war in Ukraine, said the source, who was not authorized to speak about the matter publicly.
Dragged out deal
Closure of the deal dragged out because of due diligence and financial, regulatory and legal considerations, according to a source with knowledge of the matter, the source added.
Algador purchased the yard from Russia’s sanctioned United Shipbuilding Corporation in 2019.
Davie, which is nearly 200 years old, is one of three shipbuilders helping to deliver on CanadaΓÇÖs National Shipbuilding Strategy, with their part being to deliver seven icebreakers.
Canada though has a recent history of shipbuilding projects running into major delays and costing far more than initially budgeted. Davie also plans to pitch the U.S. on creating and upgrading icebreakers, said the source.
Related stories from around the North:
Canada: Growth in Arctic shipping warrants Polar Code adjustments, say experts, Eye on the Arctic
Finland: Cold winter brings out Finland’s icebreakers ahead of schedule, Yle News
Norway: December sea ice levels in Arctic Europe at record low, The Independent Barents Observer
Russia: Russian VTB bank to finance the construction of icebreakers, The Independent Barents Observer
Sweden: Swedish icebreaker reaches North Pole for climate study, Radio Sweden
United States: ‘Uber for icebreakers’ idea gains traction in U.S. Senate, Alaska Public Media