(Bloomberg) -- Japanese shipping company Mitsui OSK Lines Ltd. said it may incur losses on its contracts for liquefied natural gas carriers related to the sanctioned Arctic LNG 2 export project in Russia.

The company has had to modify charter contracts for three LNG carriers and one ice-breaking condensate tanker due to sanctions placed on Russia by the US and Europe, the firm said in a statement on Thursday. A company spokesperson confirmed the tankers were related to the Arctic LNG 2 project.

Mitsui OSK is in negotiations with the parties involved, but said it will look to sell the vessels if it is unable to fulfill its contracts. The company may not be able to recoup its 105 billion yen ($687 million) investment in the four ships, it added.

Arctic LNG 2 came under US sanctions last year as the White House tried to curb Russia’s export revenue from the fuel. Mitsui OSK has previously said it is looking to sell the ships or transfer the contract.

Shares climbed as much as 5.8% in Tokyo despite the possible losses, helped by the company’s plan to buy back up to 100 billion yen of shares. The announcement was a slight surprise, according to Tsuyoshi Hori, an analyst at Mito Securities Co.

--With assistance from Haruka Iwai.

(Adds share move in fifth paragraph)

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