Report: In Russia, the production of ships fell

Report: In Russia, the production of ships fell
2023-04-25T15:29:19+00:00

Shafaq News / Russian shipbuilding companies are finalizing the details. This slows down the production of ships.

At the Russian shipbuilding giant United Shipbuilding Corporation (United Shipbuilding) is running out of key parts, delaying or halting production of the tankers and ocean-going vessels the country needs to transport oil and cargo.

He writes about it The Wall Street Journal.

There is a shortage of imported engines at the Zirka plant.

After the Russian invasion of Ukraine, the US and Europe reportedly hit Russia with sanctions and export controls that disrupted the flow of parts for engines, propellers and fuel pumps.

Now the largest Russian shipyards are trying to find enough propellers and engine parts.

The United Shipbuilding Corporation has been under sanctions since 2014. However, there are problems with obtaining equipment and foreign specialists to install parts « acquired a systemic character” after February 2022.

According to some of the company’s top managers, the Russian shipbuilding sector has faced the biggest problem since the collapse of the USSR. Thousands of shipyard and ancillary jobs could disappear next year.

Russian investment consultant INFOline said that last year local shipyards delivered 20% fewer vessels than in 2021. Last year, the United Shipbuilding Corporation produced only four ships. According to sources, this is because the German-made screw-in steering columns are no longer available.

Russian shipping company executives say shipyards are trying to produce some of the scarce parts themselves or replace them with imports from China. However, establishing new supply chains in shipbuilding takes time and increases costs.

The manager of the Zirka plant said that a lack of imported engines is hampering production at his plant, and that some of these parts take several years to make in Russia.

Against the background of what is happening, Russian shipyards are lobbying the Kremlin for support and subsidies — the cancellation of taxes and fines for late deliveries.

In July last year, it was reported that the Russian occupiers Vadym Novinsky shipyard in Kherson was seized.

(Top News)

Shafaq Live
Shafaq Live
Radio radio icon