Russian Gov’t to appropriate RUB7 bn for the development of marine components

The funding will enable local companies to complete more than 100 newbuilds projects of total value of RUB 500 billion

The Russian government will allocate 7 billion rubles this year for the design, creation and mass production of the most important ship equipment. According to Prime Minister Mikhail Mishustin, this will make it possible to develop domestic basic designs of 40 types of such marine components, which will make it possible to complete the construction of more than 100 newbuilds with a total cost of over 500 billion rubles in the coming years. Another 22 billion rubles will be required to replace imported components with domestic samples, the Russian government official website said.

The issue of funding was considered today at a meeting of the government.

Mr. Mishustin said the imposed sanctions have disrupted cooperation in many sectors, including shipbuilding, where difficulties arose with the completion of ocean tankers, LNG carriers, fishing boats, passenger and other civil vessels. This happened, first of all, due to the impossibility of purchasing a number of components abroad. The PM recalled that this topic was discussed in detail on August 18, 2022 at a meeting with the Russian President Vladimir Putin on the development of the shipbuilding industry.

Mr. Mishustin emphasized the importance of using the funds "as efficiently as possible". “The development of each piece of equipment must necessarily be completed by mass production with further implementation. I ask the Ministry of Industry to keep this work under permanent control,” he said.

Earlier, the Russian government updated the state program “Development of Shipbuilding and Equipment for the Development of Offshore Fields”, outlining among the priorities for the development of the industry “ensuring the unconditional local manufacture content in shipbuilding output”. Russian President Vladimir Putin, at a meeting on August 18, 2022 on the development of the shipbuilding industry, drew attention to the difficulties facing Russian shipbuilders related to the supply of foreign equipment and components for civilian ships. He urged to minimize the impact of current negative factors on the execution of civil shipbuilding projects.