Russia will subside ship recycling and boost shipbuilding

ShipbuildingRussia will subside the ship recycling to recover part of the cost of acquiring or building new merchant vessels. For the current year, the government will allocate 400 million rubles and the measure will last until 2030. The Russian Ministry of Industry and Trade plans to consolidate the requirements for the priority placement of orders for the construction of ships at domestic shipyards, which will boost the local sector and expected to start benefiting the economy from 2020, as the measure is good only with the full technical modernization of domestic enterprises and need technical period for modernization of the yards.

“The Ministry of Industry and Trade has developed a ship recycling grant in the form of subsidies to organizations to recover part of the cost of acquiring or building new merchant vessels in exchange for ships that have been scrapped. This year, the planned subsidy is 400 million rubles. Financing of the ship recycling grant will last until 2030”, said the Russian Industry and Trade Minister, Denis Manturov.

The Russian government also plans to boost shipping industry in the country, as the coastal transportation within Russian territorial waters should be carried out only under the Russian flag vessel and ships built at Russian shipyards.