Russia Plans $6.2B Outlay to Build 1,600 Commercial Ships by 2036

The Russian government mapped out its ambitious plans to modernize and expand its national fleet to counter the impact of foreign sanctions and restrictions. The shipbuilding industry is one of the hardest hit by the restrictions on exports of advanced technology and machinery to Russia since the start of the war in Ukraine.

Russian Prime Minister Mikhail Mishustin has spoken out on the efforts to fulfil the plans called for by President Vladimir Putin. Mishustin outlined today, May 12, at a meeting of the region premiers what he called an updated strategy for the development of the shipbuilding industry. In addition to expansion and modernization, one of the key goals is to develop the domestic capabilities to replace foreign shipboard equipment and create a domestic supply chain.

“In the next six years, we will spend over 500 billion rubles ($6.2 billion) in federal funding for these purposes, which is a record figure for the industry,” said Mishustin. He said the priorities would be to support freight traffic via the Northern Sea Route and to establish logistics routes between Russia and friendly countries. They are also seeking to support inland navigation and expand river tourism.

First Deputy Prime Minister Denis Manturov provided specific details on the plan, noting that they must replace the existing fleet that was built in the 1970s and 1980s. The strategy calls for building more than 1,600 ships by 2036 and more than 2,600 by 2050. Previous reports said they would build 713 vessels by 2030.

The plan focuses on large-capacity projects including crude oil tankers, gas carriers, shuttle tankers, and bulk carriers. Published reports said 51 of the vessels would be for the Northern Sea Route, while there will also be a focus on icebreakers and the fishing fleet, which would add 279 vessels. They also look to support the North-South route, which includes Caspian Sea shipping.

To achieve the ambitious building plans, Mishustin said they will need to build new shipyards, expand production capacity, and undertake R&D to attract investors.  They will need to overcome “structural barriers” within the industry.

The priority remains on fulfilling the state’s defense needs, with a new plan being developed for the Russian Navy. They look to coordinate the needs of the Navy with the goals of expanding the merchant fleet.