The amendments do not violate Russia’s obligations under the WTO
The State Duma says its deputies have approved in the first reading the draft law “On introduction of amendments into Article 4 of the Merchant Shipping Code of the Russian Federation” (concerning certain works that can be conducted involving ships built exclusively in the Russian Federation) which is to encourage shipping, leasing and shipbuilding companies, including foreign ones, to place orders for construction of ships and supply of components in the territory of Russia.
The bill was submitted to the State Duma of the Russian Federation by RF Government which approved the MSC amendments at its meeting on 31 July 2020.
The draft law empowers the Government define the types of work that can be conducted involving ships built exclusively in the Russian Federation.
Those works can include transportation of cargo and passengers, exploration and development of mineral resources, seaborne transportation and storage of hydrocarbons produced in Russia.
Vessels involved in the abovementioned works before signing the bill into a law can continue their activities.
As of today, average loading of domestic shipyards does not exceed 40–50%. The current backlog of orders does not ensure a sufficient loading of Russian shipyards and their profitability.
The explanatory note to the draft law says the amendments do not violate Russia’s obligations under the WTO.
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