Industry Leaders Spotlight on USC and St. Petersburg Shipyards
The head of VTB Bank, Andrey Kostin, addressed the audience at the Moscow Financial Forum, highlighting ongoing concerns around the United Shipbuilding Corporation (USC) and the state of Russia’s shipbuilding sector. He pointed to the St. Petersburg shipyards, noting that decades-old equipment remains in operation, including machinery dating back to World War II. Kostin stressed that the presence of such antiquated machines is not a point of pride but a tangible indicator of the sector’s aging infrastructure. The statements drew attention to a broader discussion about the condition of critical production assets across major shipyards. Cited: USC
Kostin described his recent visits to several USC facilities in St. Petersburg, where gear and tooling have persisted for generations. He recalled machines that have served continuously since 1932, with the majority of older equipment still in use. While these relics are often cited by staff as a sign of resilience, the banker argued they reflect a chronic mismatch between asset depreciation and the needs of a modern maritime industry. The observation underscores the tension between preserving legacy production capabilities and pursuing modernization. Cited: USC
According to Kostin, the machines in use were originally German-made and were redistributed under compensation agreements. This historical footnote illustrates how past geopolitical shifts have shaped the current industrial landscape and the long-term implications for technical upgrades within USC. Cited: USC
Residents and workers alike have taken pride in the endurance of these machines, sometimes celebrating their longevity as a symbol of continuity. Kostin countered that framing by arguing that such appliances should not be mistaken for monuments; rather, they signal an urgent need for modernization and investment in modern manufacturing technology. The discussion points to a broader question about how aging equipment affects productivity, safety, and efficiency in shipbuilding. Cited: USC
USC stands as a Russian state-controlled holding company encompassing roughly 40 design bureaus and research centers, along with multiple shipyards, repair facilities, and engineering enterprises. The organization plays a pivotal role in national defense and commercial shipbuilding, coordinating the design and production pipeline across a complex network of institutions. Cited: USC
Earlier remarks by Kostin referenced what he described as a substantial financial deficit within USC. He cited an audit that reportedly uncovered significant financial gaps and pointed to a pronounced technological lag, especially in civilian shipbuilding sectors. According to him, governance practices within the corporation were operating at a relatively low level, which could hinder timely decision-making, accountability, and strategic execution. The comments align with calls from other industry observers for stronger financial oversight, clearer strategic direction, and a faster pace of modernization. Cited: USC
The thread of Kostin’s reflections extends beyond USC to the broader ports and fleets that rely on these industrial capabilities. In related developments, sources note that the Pacific Fleet recently accepted two additional rocket ships, underscoring ongoing military modernization in the region. This move highlights the dual-use dynamics of shipbuilding, where military readiness often intertwines with civilian maritime progress and the strategic priorities of national defense. Cited: USC