Dynagas LNG Partners said two of its six LNG carriers face restrictions on transporting Russian LNG from 1 January 2027 under new EU sanctions rules, while the partnership maintains that the long-term Yamal charters covering the vessels remain enforceable, according to the partnership’s 13 March earnings release and Form 6-K filing.
The vessels are the Yenisei River and Lena River, which are employed by Yamal Trade Pte. Ltd. under charters running until 2033 and 2034 respectively.
Dynagas said the ships have been transporting LNG produced in Russia to destinations worldwide in compliance with applicable sanctions rules.
The incoming EU regime will affect the charterer’s ability to continue using the vessels “in the manner currently conducted” once the measures take effect.
The partnership said the two Yamal charters represent a material exposure. For the year ended 31 December 2025, the charterers accounted for 36% of Dynagas’ total revenue.
Dynagas said it believes “the Yamal Charters remain enforceable notwithstanding the New E.U. Sanctions Regulations,” but added there can be no assurance that the charterers will share the same interpretation.
Any disagreement could lead to disputes, non-performance, litigation or early termination.
The company added that the loss of revenue under either or both charters would have a material adverse effect on its business, results of operations, financial condition and ability to make distributions to unitholders, and could trigger a default under its debt agreements.
The EU framework cited by the partnership was adopted by member states in January. The regulation introduces a phased prohibition on Russian pipeline gas and LNG imports into the bloc, including a full ban on LNG imports from the beginning of 2027 for existing long-term contracts after a transition period.
Dynagas disclosed the sanctions exposure alongside its fourth-quarter and full-year 2025 results. The partnership said its fleet consists of six LNG carriers with an aggregate carrying capacity of about 914,000 cubic metres.
Dynagas LNG Partners LP is a master limited partnership organised under the laws of the Republic of the Marshall Islands and focused on LNG shipping. The partnership owns LNG carriers deployed on long-term time charters and conducts its commercial and technical vessel management through affiliated entities.