Russia’s “Naval Fiasco”: The Kremlin Couldn’t Find the Funds to Build the Promised 500 Civilian Vessels
26 May 20:45
The Russian government has been unable to find the necessary funds in the budget to finance a large-scale overhaul of its aging civilian fleet. The plan was to build 500 new vessels by 2030, but these plans are now in jeopardy.
This is reported by The Moscow Times, as cited by "Komersant Ukrainian".
According to the publication, under the Russian government’s plans, all river-sea vessels over 40 years old were to be decommissioned by 2030. To replace them, it was planned to build about 500 new dry cargo ships, container ships, and tankers. 290 billion rubles were to be allocated from the budget to finance this program, specifically for preferential leasing of vessels to be built by the United Shipbuilding Corporation.
However, due to budget constraints, the government decided to change the sources of funding. The program will now be implemented through:
- Increased fees for the certification of vessels 30 years old and older.
- Surcharges on port fees per ton of cargo transported.
These measures are expected to raise 210 billion rubles, with one-third coming from increased inspection fees and two-thirds from port charges.
“These measures could lead to many fleet owners leaving the market, which, in turn, will cause services to become more expensive and a shift to more costly modes of transport, and this could kill inland waterway transport as a sector,” the publication writes.
Read us on Telegram: important topics – without censorship
Other problems facing the Russian fleet
Previously, there were reports of problems in the fishing industry due to restrictions on the fleet’s service life, as well as a shortage of key engine parts. This is delaying the production of tankers and vessels needed to transport oil and cargo.
In addition, Rosmorport terminated its contract with the Onega Shipyard for the construction of icebreakers due to sanctions.
Watch us on YouTube: important topics – without censorship
