That is to encourage ship owners have their ships repaired in Russia, not at foreign yards
In March, the Ministry of Industry and Trade addressed Prime Minister Mikhail Mishustin with a request to support civil sector of ship repair industry amid sanctions by setting a zero VAT for repair of commercial ships, the Ministry told IAA PortNews. Relevant amendments can be introduced into the Tax Code of the Russian Federation.
“The Ministry of Finance is ordered to analyze the proposal and to report its position on the issue. The response is expected this month,” said the press center of the Ministry of Industry and Trade.
The Ministry for the Development of the Russian Far East and Arctic earlier proposed setting a zero AT for all types of ship repair at the enterprises of the Far East. According to the Ministry, this measure is aimed at raising competitiveness of the industry, import substitution and development of ship repair facilities in the Far East Region.
The Ministry of Industry and Trade says that the initiative aimed at the Far East is a pilot project used to estimate the effect of such a measure on the entire ship repair industry.
According to import entries registered by the Customs Service of the Russian Federation, statistic value of repairing 70 ships abroad thoughout the year of 2020 was as high as $119.19 million or RUB 8.57 billion (according to ruble/dollar rate of 2020). That statistics was shared by All-Russia Association of Fishery Enterprises, Entrepreneurs and Exporters (VARPE). Its ships used to be frequently serviced by the shipyards of Norway, Finland, Poland, Baltic states, China and South Korea due to absence of sufficient ship repair facilities in Russia.
Regulatory issues of Russia’s ship repair market will be discussed at the conference “Ship Repair, Modernization and Components” organized by PortNews Media Group with the support of United Shipbuilding Corporation. The event will be held by on the zero day of the Global Fishery Forum and Seafood Expo Russia (SEAFOOD EXPO RUSSIA) on 20 September 2022 in Saint-Petersburg. The conference delegates will also discuss modernization and construction of ship repair facilities and supply of components as well as ship repair technologies and supply chains.
The conference organizer - PortNews Media Group supported by United Shipbuilding Corporation JSC (USC).
Participation fee is foreseen. Advertising opportunities are offered. Read more about the event >>>>