Alexey Rakhmanov: Sanctions may pose some problems for USC

Sanctions against JSC United Shipbuilding Corporation (USC) imposed by the U.S. authorities can create for the corporation some problems related to financial transactions with payments in USD, the Corp. President Alexey Rakhmanov told "Russia 24" TV Channel.

At the same time the sanctions “are not fatal” for the USC, Rakhmanov was quoted as saying. The head of the state-owned corporation added that USC is now considering the possibility of switching to payments in alternative currencies, with the prospects of using RMB and that “is not fantastic." Besides, the corporation has no significant contracts with the U.S. based companies, however, some USC' counterparties may have American shareholders that may result in some complications.

The Corp. press service said the U.S. sanctions against the corporation were expected and the company had considered this risk while planing its operations.

"The format in which the sanctions have been announced present for United Shipbuilding Corporation is more a nuisance rather than a significant obstacle in the operations and execution of the existing contracts. The Group is currently exploring all aspects of the USC situation prevailing in the imposition of sanctions, and then we will work out a solution to minimize the risks involved while executing our commitments to all our customers and partners," the USC said in a statement.

United Shipbuilding Corporation was founded in 2007 as a 100-percent state-owned group of companies by the Presidential Decree № 394 (March 21, 2007). The Corp.  consolidates about 70% of the domestic shipbuilding industry and incorporates three regional shipbuilding centers, nine engineering and design offices and 39 dockyards. The Corp’s largest shipbuilding assets include Kaliningrad-based JSC Yantar Shipyard, JSC Admiralty Shipyards (St. Petersburg), JSC PA Sevmash (Severodvinsk), JSC DVZ Zvezda (Vladivostok) and Baltic Shipyard Besides, UCS holds a 50% stake in Arctech Helsinki Shipyard, a joint venture with STX Finland Cruise Oy. The Corporation participates in several major international projects: construction of a new mega shipyard Zvezda-DSME through a JV with Daewoo Shipbuilding & Marine Engeneering (South Korea), the construction in conjunction with Yantai Raffles (Singapore) of Vostok-Raffles Shipyard. The Group builds ships for Russian customers and exports its products to 20 countries.