Mikko Niini,

Chairman, Finnish Maritime Association

Rauma Marine Constructions (RMC) Oy

Member of the Board, ESL Shipping Oy

26.5.2021

Russia-Finland:

Prospects

and development of

international cooperation

@ D.V. Lobusov

MY BACKGROUND

Slide 2

• 30 years of executive positions in international shipbuilding

(Valmet, Wärtsilä Marine, Kvaerner Masa-Yards, Kvaerner Vyborg Shipyard,

Aker Yards, STX Europe)

• CEO Aker Arctic Technology Inc 2004 to 2014

• Today: Chairman of the Board, Navidom Oy 2014 ->

Chairman of the Board, Rauma Marine Constructions Oy 2017->

Member of the Board, ESL Shipping Oy 2012->

CEO Vientistrategit Oy, Arctic & Maritime Consultancy 2014 ->

Senior Advisor, Team Renewable Arctic Finland (Gaia Consulting)

• Center for High North Logistics (CHNL) Member of the Board 2010->

• Member of the Board, Finnish Sail Training Association 1995 ->,

• Troms Offshore ASA 2010-2012

• Arctic Economic Council (AEC), Chair Maritime Transportation WG 2016 ->

• Intensive co-operation with Neste Oil since 1992, Nemarc Shipping Corporation Board 1995 - 2016, including J/V Arctic Shipping Service in Murmansk with MinTrans and MSCO 1993 - 2003 and OAO Pechormorneft in Naryan Mar, Head of KMY & Aker Yards, Moscow Representative Office 1990-2014

• Lloyds Register Nordic Committee chair 2016-2018

• Co-chair in Oil and Gas Working Group in the Russian Finnish Intergovernental Commission for Economic Co-operation

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RAUMA MARINE CONSTRUCTIONS (RMC)

• RMC established in 2014 by local investors, Taaleri bank and the Finnish state investment company TESI to re-open the Rauma yard after the STX closing

• Specializes in icebreakers, research, ropax ferries and naval vessels

• Currently building four innovative ro-pax vessels for the global market as well as four ice-going corvettes for Finnish Navy. Deliveries in 2025-2026

Typical ships built in Rauma

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NAVIDOM IS AN ASSET MANAGER FOR THE STRATEGIC ICE CLASS TANKER FLEET OWNED BY THE GOVERNMENT OF FINLAND

On April 29, 2014 Neste Oil divested their shipping

assets to shipowning companies 50/50 owned by

Finnish State (National Emergency Supply Agency)

and Ilmarinen under asset management by Navidom

Oy. Daily crew and technical management has been

outsourced by Navidom today to OSM Ship

Management Finland Oy

”Double-acting” crude carrier Mastera

Product carriers Uikku, Lunni, Kiisla

and Suula

Neste tankers

have

operated in

the Arctic

waters since

1972.

Below Palva

in NSR transit

in 2012

5

OUR COMPANY

ESL SHIPPING IN NORTHERN SEA ROUTE, SABETTA, YAMAL

& BAFFIN ISLAND, CANADAESL Shipping’s world’s first LNG driven 25.000 tdw bulk carriers Haaga and Viikki in 2018 transited the Northern Sea Route. High

ice class 56.000 tdw Supra Kumpula last year sailed in Baffinland Arctic trades. Arkadia followed icebreaker Botnica in the last 2018

convoy from Milne Inlet. Both Arkadia and Kumpula have traded to Sabetta up to ends of December and will sail through NSR this

year.

PASSAGE THROUGH THE ICE HAS ALWAYS BEEN THE LIFELINE

FOR FINLANDFinland was always isolated totally

by ice for one third of a year.

This was the way we kept contacts in

centuries. Due to weather conditions the

harvest was lost in 1868. No food import was

possible due to the ice and five per cent of

the population did not survive. Winter

shipping had to be

organized First winter steamship

SS Express in 1877

FINLAND HAS BUILT ICEBREAKERS FOR MORE THAN 100 YEARS

In 1910’s icebreaker construction starts in

Finland

Voima (I) in 1916 and Jääkarhu in 1925

These steam icebreakers were developed

and designed by K.Albin Johansson and

Ernst Bäckström who led the icebreaker

development in Finland until 1960’s

Slide 7

Mercator 1910 Kaspiy 1913

Source: HolmströmSource: Laurell

FROM WORLD’S FIRST DIESEL ELECTRIC SHIP TO DOMESTIC

DIESEL-ELECTRIC FOUR SCREW AND POLAR ICEBREAKER

GENERATIONSFrom world’s first diesel-electric naval vessel

in 1928 led to first diesel-electric icebreaker

Sisu in 1939 and to new generation of diesel

driven merchant vessels. Astrid Thordén was

the first diesel-installed vessel in 1937.

Early

New domestic innovations around new

generation of icebreakers in the 1950’s.

These opened exports to Sweden,

and Germany and the U.S.S.R. (Kapitan

Belousov and Moskva-classes)

Slide 8

9SNAME 4.11.2010

Finland’s contribution

was significant. All

these were developed

and built in Finland:

19 Arctic dry cargo

ships (SA-15)

25 polar tankers of

four types

9 Polar icebreakers

2 Nuclear icebreakers

(Taymyr & Vaygach)

14 river icebreakers

IN MY EARLY CAREER CANADA AND THE U.S.S.R. STARTED

DURING 1980’s INVESTING ACTIVELY IN ARCTIC SHIPPING

SNAME 4.11.2010

GLOBAL COMPETITION, BOOSTER TO NEW CONCEPT INNOVATIONSSorokin – Thyssen WAAS

Nikolayev – Wärtsilä Marine spoon bow

Dranitsyn, Khlebnikov – original bow

Canada – ramming with Nozzle propellers

Baltika – Oblique wide channel & oil spill concept

Fennica – Arctic Aquamasters

COMPETITION BROUGHT ALSO MANY NEW FEATURES FOR REDUCTION OF ICE FRICTION

Stainless

steel ice

belt

Waterfall

and

Air bubbling

CRP

Propulsion

(STQ)

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MULTIMILLION R&D PROGRAM WITH UIKKU AND LUNNI

IN 1990s TO PROVE THE CAPABILITY OF AZIPOD® IN REAL

ARCTIC OPERATIONS

UIKKU and LUNNI in multi-year Arctic testing

through joint ventures with RF Mintrans and MSCO

by Kvaerner Masa-Yards and Neste Oil from 1993

to 2003 . KMY & ABB tested the

product before market approach.

First Arctic application

by Exxon Neftegaz in 2003.Tankers until 2020 in successful

service as «Варзуга» and «Индига».

NEW LOGISTIC SYSTEMS BASED ON INDEPENDENTLY ICE BREAKING CONCEPT WERE SOON CREATED, FIRST FOR

NORILSK NICKEL IN 2003 FOR THE KARA SEA

First vessel delivered after succesful ice trials

on April 12th, 2006. Vessel in regular traffic

between Dudinka and Murmansk in

independent operation. Ice class ARC 7. All six

ships in service in 2011.

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THIS WAS FOLLOWED BY A NUMBER OF EXPORT SHUTTLE SYSTEMS FOR RUSSIA (PRIRAZLOMNOYE, VARANDEI, NOVY PORT)

@Aker Arctic

There was a lot of technical co-

operation by Finnish companies with

Russian yards, who were contracted to

build these vessels

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THE REAL BREAKTHROUGH: CHRISTOPHE DE MARGUERIE - WORLD’S FIRST ARCTIC LNG –

LEADING TO 15 SHIPS IN OPERATION AND 16 MORE TO COME NOW

177 000 cu.m.

3 x 15 MW, Arc 7

Next generation

3 x 17 MW

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LATEST NOVELTIES FOR SUSTAINABLE SOLUTIONS

LNG in icebreakers

POLARIS

• One or two bow pod drives

• LNG dual fuel for icebreaking

• Contra-rotating propellers (CRP)

Load bank

• Hybrid propulsion

• Electric load banksOB

Rosatomflot

Ilya Muromets

Aurora Botnia with LNG DF DE

machinery with battery pack

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LATEST NOVELTIES FOR SUSTAINABLE SOLUTIONS

Steerprop CRP drives for improved propulsion efficiency

LNG-driven Aurora Botnia at RMC

with battery pack, world’s first ferry

with Clean Design notation and first

dual fuel Wärtsilä 31DF engines.

Wärtsilä is working actively towards

new ship fuels. Ammonia and

methanol

ABB more powerful

pod drives,

DC grids for better

economies

All-electric ferry Ellen

in Denmark

New wind rotor propulsion

applications

Strong industry cluster for electric

systems and all-electric ships:

ABB, Danfoss, Switch, WE Tech

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THE COMPETITIVE FINNISH MARINE INDUSTRY STRIVES TOWARDS INNOVATIVE AND SUSTAINABLE SOLUTIONS AND

IS READY TO OFFER THEIR EXPERIENCE ALSO TO CLIENTS AND OPERATORS IN RUSSIA

Today we are meeting two major challenges:

• The global world trade political situation has created some hurdles. The situation is very

unstable for general trade, financing, establishing of joint ventures and making

investments

- contacts with newly established private shipping companies would be highly welcome

• The RF localisation legislation is limiting and restricting traditional direct export from

Finland. The goal is to make foreign compoanies to invest in Russia

- prerequisites for investments are 1) long-term growing market, 2) stable legislative, financial

and taxation environment, 3) suitable location, 4) qualified staff on all levels, 5) reasonable

conditions for the investor’s expats

Additionally

• Finnish shipping is also looking for investment opportunities in Russia

- how to make legislation lucrative and easy for newcomers

• International co-operation through Arctic Economic Council Maritime Transportation

Working Group

- From Russia already Gazprom Neft, Novatek, Rosatom and SUEK are members

- From Finland Finnish Shipowners’ Association

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Thank You!

Creativity and open cross-border collaboration are the solutions for success..