NWF funding for expanding ship leasing program estimated at 212 bln rubles to 2035 - Yevtukhov
ST. PETERSBURG. March 4 (Interfax) - The expansion of Russia's subsidized leasing program in civilian shipbuilding to 2035 is expected to be almost wholly financed with money from the National Welfare Fund (NWF), Deputy Industry and Trade Minister Viktor Yevtukhov told reporters.
"Calculations are now being done. I think that about 212 billion rubles in funds from the NWF will be needed for the period to 2035," Yevtukhov said when asked how much financing will be required.
"We believe that such a program needs to be implemented. However, there is a nuance. Specifically, financing for the leasing program must almost 100% consist of NWF funds [and] the funds must be provided at 1.5%. In other words, the leasing interest must be very low so as to meet the needs of the consumer on one hand, while at the same time cover the financial expenses of companies providing these services so that in the process of the program's implementation the price of vessels does not ultimately increase significantly compared to the price initially stated in the contract," Yevtukhov said.
Last summer President Vladimir Putin ordered the government to make a decision by March 2024 on allocating NWF resources starting in 2025 for the subsidized civilian vessel leasing program so as to fund the additional construction of at least 200 passenger vessels.
"We already have more than 300 applications [to lease vessels], 337 to be precise. The first stage is underway at this point, we're looking at, analyzing the applications that are confirmed, and this is more than 170 vessels," Yevtukhov said.
"The program is important. On one hand, it ensures the connectedness and transport accessibility of the country's regions, makes it possible to develop tourism, and on the other it provides work for shipyards and, consequently, the possibility to improve our shipbuilding competencies. We are already building passenger vessels to meet any need, from small electric ones to cruise and high-speed vessels on hydrofoils," Yevtukhov said, recalling the president's order and expressing confidence that the program will be implemented.
The current subsidized leasing program for watercraft calls for the construction of 260 civilian vessels of various type and size by 2028. The investment plan for the program was prepared at the end of 2022 and estimated by the authorities at 231 billion rubles, including 136 billion rubles expected to be financed by the NWF. The other 85 billion rubles are supposed to be raised on the market by State Transport Leasing Company (GTLK).