Reduction of Russia's civil shipbuilding program by 42%

• Russia has cut its civil shipbuilding program by 42%
• Funding is redirected to military needs
• Sanctions have impacted the maritime and aviation sectors

This is reported by Ukrinform, RBC Ukraine.

The Russian government has reduced its civil shipbuilding program by 42% in favor of military fleet interests. This information was reported by the Main Intelligence Directorate of Ukraine.

According to the information, due to an increase in construction costs and budget deficits, Russia has reduced its program for civil shipbuilding to $1.68 billion, which indicates a reduction in the shipbuilding plan from 260 to 191 units.

Reasons for the cut include increased costs of components, delays in deliveries of ships, and competition with military programs for limited resources. As of today, the state shipbuilding company has not completed any of the planned vessels.

The reduction threatens the renewal of the civil fleet, which urgently requires at least 200 new ships for the transportation of grain, oil, and metal, including on Arctic and Caspian routes. The lack of modern vessels will only worsen.

Currently, the military fleet remains a priority: for six years, the Russian military maritime fleet has received five submarines of the Borey-A type and four submarines of the Yasen-M type.

In addition, the program for the modernization of the civil maritime fleet, which was actively pursued by the authorities in 2023, was cut by more than 40% due to critical financial shortages. Planned construction of 260 commercial, fishing, and cruise ships over five years has virtually been abandoned.

The Kremlin is quickly reallocating financial resources to support military operations against Ukraine, leaving civil initiatives on the sidelines. This negatively impacts not only the shipbuilding industry but also the aviation and maritime sectors.

Due to sanctions and increasing technical degradation, aircraft in Russia are increasingly involved in accidents. For example, a recent crash of an An-24 aircraft in the Amur region resulted in the deaths of all 49 people on board.

Russia has also been forced to decommission and utilize the only aircraft carrier, "Admiral Kuznetsov," which for years has been undergoing repairs, but still not achieving combat readiness. This year marked the first time a major naval parade was held in St. Petersburg without any aircraft.

Sanctions have also seriously disrupted traditional supply routes to Kaliningrad, where maritime transportation has increased, but the logistical network is collapsing.

Tags: Russia/Economy