Russia reorganizing shipbuilding

The Russian government will soon adopt a strategy for the development of shipbuilding until 2020, which envisions the creation of three major shipbuilding holdings, the defense minister said Tuesday.

Three shipbuilding holdings will be set up in 2007, Russian Deputy Prime Minister and Defense Minister Sergei Ivanov told journalists following a meeting of the government’s maritime board. According to him, Russia is experiencing serious shipbuilding problems, which may be compared to those in aircraft engineering.

The holdings will be created in accordance with Russia’s long-term maritime strategy until 2020 which is expected to be approved in the near future. The minister said one of the holdings will be set up in Russia’s Far East to ensure the development of the shipbuilding industry on the Pacific coast. “It is important for us not to lose our position in the construction of ships of various classes on the Pacific coast,” Ivanov said, adding that many unresolved problems still remain in Russia’s shipbuilding industry. “While we are making good progress in the construction of ships for the Navy, the situation in civilian shipbuilding is terrible,” the deputy prime minister said.

Members of the Federation Council stated that the industrial and technological base of shipbuilding organizations does not meet the requirements of modern shipbuilding and does not provide for competitive production. River, fishery, research and rescue fleets are senseless to upgrade, as they are 80% worn out and must be replaced, the statement said.

In an apparent reference to Gazprom’s decision to develop the Shtokman field on its own, Ivanov also urged the concentration of efforts on shipbuilding for oil and gas exploration on the continental shelf, especially in the Arctic region.