Zvezda shipyard deal cancelled due to financial terms - Manturov

MOSCOW. March 27 (Interfax) - The deal to fold the Zvezda shipyard into the United Shipbuilding Corporation (USC), which is now under the management of state bank VTB , was called off because of its financial conditions, First Deputy Prime Minister Denis Manturov said on Wednesday.

"Regarding the reasons, this issue is more related to the financial conditions and parameters of the deal," Manturov told reporters when asked why the deal was cancelled.

Oil company Rosneft established this shipyard in Russia's Far East and managed it "fairly efficiently," Manturov added.

The Zvezda shipyard is being built at the Far East shipbuilding and ship repair center by the consortium of state company Rosneftegaz, Rosneft and Gazprombank . Rosneft provided the shipyard with a pilot order for 28 vessels. Zvezda now has a portfolio of more than 60 vessels, including a Leader series nuclear powered icebreaker, new generation tankers, Arctic ferries, gas carriers and multiuse supply vessels.

Last November it was reported that Rosneft and VTB had entered into negotiations to fold Zvezda into USC. But on March 18 VTB head Andrei Kostin said that the deal was called off because the state corporation does not have the money to acquire the shipyard.