Russia Plans to Boost Subsidies for its Struggling Shipyards

The government of Russia plans to boost subsidies for Russian shipyards by 6.58 billion rubles in 2024.

The Kremlin’s draft budget suggests that financing for the state program in 2024 may increase from 11.8 billion rubles to 18.387 billion rubles, in accordance with various Russia media.

Furthermore, there are plans to subsidize Azov Ship Repair Yard with an additional 2 billion rubles. The upcoming financial cycle has also focused on the Northern Sea Route Development project.

However, in Kremlin´s portfolio there are plans to allocate 4.5 billion rubles less in 2024 for the construction of nuclear icebreakers and a multifunctional nuclear service vessel.

There will be a reduction of financing for these vessels in the years 2025 and 2026 that could total to 4.2 billion rubles and 2.2 billion rubles, respectively.

Last year the president of Russia Vladimir Putin held a meeting, via videoconference, on the “hot topic” of developing the shipbuilding industry.

The Russian president pointed out that there is a crucial need to set in motion the initiatives of Russian shipbuilders, their domestic suppliers and customers, to support the upgrading of the shipyards and offer convenient financial mechanisms so that new orders for high-quality, modern vessels, including ice-class ships, are completed in Russia in order to increase the capacities of the Northern Sea Route and Russia´s other Arctic projects.

“Let me repeat that Russia has everything necessary for the confident, long-term development of shipbuilding, including great experience and innovations in this area, a resource and industrial base, and the enormous potential of Russian engineering and design,” Vladimir Putin noted.

In the meeting it was also stressed the importance of expanding the icebreaker fleet, which is a top priority for the Russian President Putin.

With the ongoing war in Ukraine, President Putin appears keen to revitalize shipbuilding in Russia.

With Russia hoping to start year-round shipping through the NSR, it is keen to build a fleet of nuclear icebreakers and ships.