Canada's Davie completes purchase of shipyard in Finland

Canada’s Davie Shipbuilding said it has completed the purchase of Helsinki Shipyard, a major builder of Arctic ice-breaking vessels, from Russian-owned Algador Holdings after securing regulatory approval. Regulators said the deal was not in violation of sanctions on Moscow. While the terms of the purchase agreement are confidential, the transaction was financed through a combination of Davie's own funds and EUR 77 million in financing from the Quebec Regional Government of Canada, according to a Davie statement. Privately-owned Davie announced the purchase of the Finnish yard earlier this year. Algador Holdings is owned by Russian businessmen Mr Rishat Bagautdinov and Mr Vladimir Kasyanenko, who are also Belgian citizens. Quebec-based Davie worked with regulators in Finland, the European Union, Canada, the United Kingdom, and the United States to ensure the deal was not in violation of sanctions related to Russia's war in Ukraine. Closure of the deal was delayed because of due diligence (financial checks) and other financial, regulatory, and legal considerations. Algador purchased the yard from Russia's sanctioned United Shipbuilding Corporation in 2019. Davie is one of the shipbuilders helping to deliver on Canada’s National Shipbuilding Strategy, with their part being to deliver seven icebreakers. Canada has a recent history of shipbuilding projects running into major delays and costing far more than initially budgeted. Davie also plans talks with the U.S. on creating and upgrading icebreakers, according to sources in Canada.