Russia to launch huge shipbuilding programme

RUSSIA plans to build more than 1,600 ships by 2036 under a proposal unveiled by the government this week.

Of the 1,637 vessels slated to be built, 713 will be delivered by the end of the decade, according to the target.

The campaign will focus on greater utilisation of the northern sea route, which runs along Russia’s Arctic coastline and has long been touted as a shorter route between the country and Asia.

Russian Prime Minister Mikhail Mishustin said that “in the context of external sanctions and restrictions”, renewing Russia’s domestic fleet was “of key importance for building logistics routes to friendly countries”.

Both China and Russia issued a joint statement signalling their intention to develop the northern sea route in 2024 during a visit to Beijing by Russian President Vladimir Putin.

But this signal of investment has not yet translated into greater use of the route, largely because of the lack of ports and search-and-rescue infrastructure.

The shipbuilding plan, unveiled by deputy prime minister Denis Manturov, will focus on “developing competencies in large tonnage projects”, including crude oil tankers, gas carriers, bulk carriers and containerships, as well as icebreakers.

By 2036, the Russian government said it expects to see 51 vessels using the northern sea route, and 135 by 2050.

Manturov acknowledged that for Russia to meet its ambitious targets, new shipyards would have to be constructed.

Russian shipbuilding has been on the decline since the mid-2000s, with fewer than five cargo vessels built in Russian yards in 2024.

But by 2036, the Russian government wants half of the components for those 1,600 vessels to be manufactured domestically, with that figure rising to 80% by 2050.

The number of employees in the shipbuilding sector is set to increase from 166,000 now to 190,000 by 2036, and to 200,000 in 2050.

Mishustin said this plan was key to achieving the “technological sovereignty” targeted by president Putin.

The “dominant role” in terms of financing this huge project would be the state, Manturov said, with the plan promising some Rub500bn ($6.2bn) earmarked for the plan.

“At the same time, as competencies are built up and the competitiveness of products increases, the level of state participation should gradually decrease,” Manturov said.

“Shipbuilders are ready to take on this long-term challenge and are in fact already implementing many of the approaches outlined.”

Russia controlled the world’s fourth-largest merchant ship fleet until the fall of the Soviet Union in the 1990s.

However, much of the Soviet fleet was constructed by shipyards in Ukraine or Poland with some of the more advanced tonnage being built in Finland.

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Lloyd's List Daily Briefing 14 May 2025