The share of the Russian flagged fleet in the transportation of domestic export cargo accounts for only about two percent. Now, amid the severe sanctions and withdrawal of several large shipping lines from the Russian market, there is much concern about the existing own ship tonnage which fall far behind and the greatest shortage is seen in the segment of bulk carriers and containerships.

According to PortNews, shipbuilding enterprises can receive financial support from the Russian government, similar to the support provided previously to the aviation and road building sectors of the country. The measure involves an increase of authorized capital of state-owned shipyards (nearly 40 enterprises) that are members of United Shipbuilding Corporation. This will require overall about RUB 130 billion. More than half of the funds will reportedly be directed to the North-West region based shipyards specializing in building cargo ships, fishing fleet and icebreaking vessels for the Arctic routes. Experts believe that the funds partially offset the cost of components and materials amid general inflation and sanctions.

The safety of sea shipping and the commercially efficient operation of ships depend to a great extent on how the shipping companies organize technical maintenance of their fleets. Aleksandr Dennemark, Technical Superintendent of PAO Sovcomflot, told IAA PortNews about the specifics of his profession and about the process of shaping merchant fleet management

Leningrad Region Governor Aleksandr Drozdenko promised Belarus President to place “some port facilities” in the region under Belarus’ management and to provide some sites for construction of a port. Those sites and facilities are behind a shroud of secrecy while experts speak about the need to build a dedicated covered terminal.

Rosmorport has a negative outlook on possible effect from cutting payments for berths rented in Great Port of Saint-Petersburg. Amid the sanctions, general turnover has reduced by almost a half, which affected the stevedoring companies, says the Smolny (Saint-Petersburg Government). Together with the decrease of calls and, consequently, port revenues, potential reduction of rental rates will worsen financial results of Rosmorport, the company responsible for investments into port infrastructure

The European Council has approved the sixth package of sanctions against Russia to restrict deliveries of crude oil and petroleum products from the Russian Federation. In this context, Gibson Shipbrokers experts expect some tankers currently involved in sanctioned crude exports of Iran and Venezuela to find new employment opportunities in the interests of Russia

RF Government has issued a Decree on creation of a special economic zone (SEZ) of industrial and production type in Ust-Luga. It is to host a gas chemical cluster with a direct access to the sea. Numerous gas-to-chemicals projects have been announced in Russia but there is still a lack of terminals dedicated for handling of the products.

When speaking at the meeting on the development of certain sectors of Russia’s transport industry, Russian President Vladimir Putin emphasized the importance to speed up the implementation of long overdue construction projects and to take into account the real demand for transportation and objective traffic forecasts. According to experts asked by IAA PortNews, it’s high time to stop developing infrastructure under ‘cargoes available’ paradigm while investments in transport facilities are a key to economy recovery today.

According to information obtained by IAA PortNews, contractors representing the Big Four dredging companies (Van Oord, Boskalis, Jan de Nul, DEME) which account for over 98% of dredging works in Russian ports withdrew from Russia’s Arctic infrastructure projects in February 2022.

Amid the pressure of sanctions on exports of its energy, Russia is interested in redirection of oil exports to the countries of Asia and Africa. Major global oil suppliers can share those markets with Russia but it is necessary to accelerate implementation of the Vostok Oil project, build up Kozmino terminal capacity and proceed with domestic production of ship equipment.