3 Apr 2014 15:20

Russia to slash financing for shipbuilding development program up to 40%

MOSCOW. April 3 (Interfax) - Financing for the Russian state program to develop shipbuilding in 2013-2030 may be cut 40%, Deputy Industry and Trade Minister Alexei Rakhmanov said.

"We have the state program to develop shipbuilding. Unfortunately, at present the program is undergoing serious adjustment. We hope to reach a mutually acceptable decision with our colleagues at the Finance Ministry, but, based on the program we inserted last year, the cuts could be as high as 40%," Rakhmanov said on Thursday at a State Duma session on the outlook for development of the shipbuilding industry.

According to the program profile on the Industry and Trade Ministry's website, budget outlays to develop civil marine technologies and the shipbuilding industry over 17 years should total about 338 billion rubles.

Rakhmanov pointed out that money has not been invested in Russian shipbuilding "in earnest" for the last 20 years.

Once the dates for commissioning certain naval and civil vessels are moved back, a "feverish mobilization" of resources and inter-ministerial coordination will begin for those projects that the United Shipbuilding Corporation (USC) state corporation is engaged in.

"We are finding solutions to all these problems. I must announce that, with high probability, the state defense order to 2020 will be fulfilled in full in conformance with the announced schedule," Rakhmanov said.

Speaking of long range planning, he said: "An effective dialog has so far been established only with the Navy."

"Hearings were held on the navy ship construction program to 2050 and those same approaches to long range planning will make it possible to organize the industrial piece, the R&D piece and the design bureau," he said.