RF Ministry of Industry and Trade is planning subsidies to cover costs on construction of shipbuilding complex “Zvezda”

RF Ministry of Industry and Trade has started drafting a Decree of RF Government on approval of the Rules for providing Russian companies with subsidies from the federal budget to cover interest rates under loans raised for implementation of projects on construction of shipbuilding complexes. According to the federal portal for legal information, the draft decree is to undergo public discussions till 6 November 2017 with the effective date of the document expected in December 2018.

The document has not been published yet.

According to the initiative description, it will let proceed with the implementation of the Project on Construction of Shipbuilding Complex “Zvezda” in compliance with the schedule and with the planned financing. Additional effect expected from the project implementation will be the development of hi-tech domestic production including that in the framework of import substitution. A considerable effect is also expected for the federal and regional budgets even taking into consideration the tax privileges. Expected tax payments into the federal budget during the project implementation period (2017–2035) – about RUB 80 bln, undiscounted tax payments into the regional and local budgets – RUB 248.4 bln. NPV for the RF budget RUB 97 bln.

Zvezda Shipyard is set up in Bolshoy Kamen, Primorsky Region. The shipbuilding complex design provides for the construction of a heavy outfitting berth, a dry dock, full-cycle production shops, and shops for the construction of offshore marine facilities. The Zvezda Shipbuilding Complex will produce heavy tonnage ships, elements of offshore platforms, ice-class vessels, special vessels and other marine equipment. Earlier Rosneft placed an order for construction of ten Aframax tankers in Zvezda Shipyard.