Russia forced to withdraw from large shipbuilding in Crimea

According to Alexey Rakhmanov, president of United Shipbuiding Corporation (USC), this is due to the sanctions imposed by the US and the European Union. He says that due to these sanctions, the majority of companies are refusing to place orders for ships to be built in Crimean yards, believing that the sanctions may result in banning such ships from entering Western countries’ territorial waters.

Mr Rakhmanov believes that this will restrict Crimean shipbuilding facilities, including Zaliv plant, which is designed heavy-tonnage vessels, to building small vessels and warships.

Analysts at the Russian Ministry of Industry and Trade consider this to be a reasonable conclusion, as ships constructed or repaired in Crimean waters, or even those entering the area, could risk a ban from European ports and incur other problems, such as difficulty in obtaining insurance.

The possibility therefore is that Crimean shipyards will specialize in government orders, in particular building ships and equipment for Russian offshore projects, as well as in warship construction and repair.

In the meantime, according to Ukranian media reports, the Crimean government has not ruled out the possibility of further mandatory buyouts or even nationalisation of local shipbuilding assets, owned by Ukranian business. Among the latest plans, is the nationalisation of the local Sevmorzavod facility, owned by the current Ukraine President Petr Poroshenko. According to Sevastopol government official spokesman Sergey Menyalo, President Poroshenko has already put the plant up for sale.