Russia Increases Civil Shipbuilding Subsidies to 14 Billion Rubles
The Cabinet of Ministers has announced a significant boost to subsidies for civil shipbuilding, raising the government support to 14 billion rubles. This was disclosed in a meeting with the Deputy Prime Ministers, where Prime Minister Mikhail Mishustin outlined the plan and its expected impact on the industry.
“This year’s budget allocates 14 billion rubles for the development, mass production, and modernization of ship equipment production. That’s a doubling of the amount from last year,” Mishustin stated. The move signals the government’s intent to strengthen the country’s shipbuilding capabilities, especially in the wake of disrupted Western deliveries caused by sanctions. The increased subsidies are designed to cushion the sector from external shocks and to preserve its critical role in the national economy.
Mishustin noted that the subsidies will apply specifically to civil shipbuilding projects. Recipients will have the opportunity to recover up to 80 percent of their expenditures, easing the financial burden of large-scale manufacturing, modernization, and equipment upgrades. This level of support is intended to accelerate investment in new vessels, modern machinery, and advanced production lines, which in turn can boost employment and technological development within the industry. [Source: Government press briefing, attribution]
In addition to the subsidy program, the government has approved measures to support shipbuilding capacity through rental arrangements. By March, the administration authorized the leasing of ships built for the purpose of processing fish products. This policy is aimed at improving the supply chain in the fishing sector, enabling higher production efficiency and better utilization of port infrastructure. The rental option is expected to help shipyards monetize idle capacity and foster closer collaboration between shipbuilders and seafood processors. [Source: official policy update, attribution]
Industry observers noted that Russia’s shipyards faced challenges last year as several Western partners curtailed deliveries amid sanctions. Despite these pressures, the sector posted a notable increase in overall shipbuilding activity. In 2022, the total tonnage of ships launched at Russian yards rose by more than 50 percent compared with the previous year, reflecting a resilient effort to expand production. However, the number of ships launched and the ships themselves decreased by around 20 percent, indicating a shift toward larger, more complex vessels and a focus on quality over sheer quantity. [Source: Kommersant report, attribution]