Yakutia to obtain shares of Zhatai Shipyard JSC if the shipyard construction is completed in 2024
RF Government’s draft decree on shifting the deadline of the construction completion is under discussion
The Republic of Sakha (Yakutia) Government and Zhatai Shipyard JSC have submitted to the Ministry of Industry and Trade written guarantees of the shipyard construction completion by 2024. The documents were submitted on September 4 and on September 19, respectively. They have also guaranteed the sufficient financing of the project, control of extra-budgetary funds attraction, and control of the including project implementation. The written guarantees and the completion of the project as scheduled are the requirements to transfer the federally owned shares of Zhatai Shipyard to Yakutia, according to the explanatory note of RF Government’s draft decree.
According to the document published on the federal portal for regulations, the shipyard was to be put into operation in 2023. The cost of construction was set at RUB 5.75 billion including RUB 4.1 billion of budget investments. The remaining RUB 1.64 billion were provided by the Republic of Sakha Development Corporation (RUB 750 million) and also included own resources of Zhatai Shipyard JSC (RUB 894.5 million). In 2019-2021, federal financing was provided to Zhatai Shipyard JSC in full.
As of June 2023, the project was 64% ready. Taking into account the rates of construction, it will be only 75-80% ready by 31 December 2023. Therefore, Zhatai Shipyard JSC asked the Ministry of Industry and Trade to postpone the project completion deadline to 2024.
RF Government’s draft decree is currently in the phase of public discussion (until 4 October 2023) and anti-corruption expertise (until 26 September 2023).
Initially, it was planned to complete the construction of Zhatai Shipyard in 2021, the the deadline was shifted to 2023.
Zhatai Shipyard will be the key facility for modernization of the fleet operating in the Lena river basin and the Arctic areas of Yakutia including the Northern Sea Route. The shipyard is designed to build up to 10 river-going and sea-going ships per year. By 2036, it is planned to build about 130 river-going ships. The shipyard is also intended for repair, modernization and scrapping of floating facilities.
Since inland water ways of the Lena Basin have no connection with other basins, construction and repair of river-going ships is only possible at a shipyard in Yakutia. There are no alternatives to Zhatai Shipyard in the region.
