Russia readies billions for domestic fleet buildout

Russian prime minister Mikhail Mishustin said that more than RUB500bn ($6.2bn) in federal funding will be spent over the next six years to support shipbuilders, component manufacturers and shipowners.

He noted that against the backdrop of foreign sanctions and restrictions, the renewal and expansion of the Russian fleet is of key importance for building logistics routes to friendly countries, cargo transportation along the Northern Sea Route and the development of river tourism.

Priority will be given to vessels for the Northern Sea Route and the North-South transport corridor, with a focus on developing capabilities for large-capacity projects, including crude oil tankers, gas carriers, shuttle tankers and bulk carriers, the government said.

The newbuilding programme will also cover icebreakers, support vessels and maintenance ships, as well as the renewal of the passenger and fishing fleets.

The baseline scenario foresees 1,637 vessels will be built in Russia by 2036, of which 713 within the next five years. More than 120 ships are envisioned for regular sea transport and another 51 for the Northern Sea Route. The country’s long-term strategy, which stretches to 2050, anticipates fleet expansion by more than 2,600 additional ships from 2037, including over 200 sea transport vessels and nearly 90 Northern Sea Route-dedicated units.

Russian first deputy prime minister Denis Manturov said that the scheme includes large-scale modernisation and efforts to eliminate the shortage of shipbuilding capacity, including establishing new shipyards, replacing foreign shipboard equipment with domestic alternatives and developing ship repair centres.

To implement the plan Russian government said it would also need to increase the workforce by at least 15% by 2036, to around 190,000 people, and also work towards attracting new talent to design and development centres and push forward with automation and digitalisation at the shipyards to boost labour productivity and gradually transition to large-block shipbuilding.