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Reports, presentations and other publications about the Baltic Sea Region by experts.

24.06.2019 09:19

BSR Policy Briefing 5/2019

Government support for the Russian shipbuilding industry: Policy priorities and budgetary allocations.
Authored by Elena Efimova and Sergei Sutyrin.

For most maritime nations, shipbuilding is a strategic industry closely linked to geopolitical interests and national security. Russia is no exception. Until the end of the 1980s, the Soviet shipbuilding industry was one of the most powerful in the world. After the collapse of the USSR, however, it lost its prominence. Since the early 2000s, the Russian government has taken steps to revive it.

Our research reveals the key goals of state support for shipbuilding in Russia: the construction of competitive goods that can meet the needs of the domestic market and strengthen Russia’s position in the world market, and the production of specialized equipment for the exploration of the shelf and the Northern Sea Route.

This Policy Briefing reveals the extent of the Russian government’s support to the shipbuilding industry. With the help of federal budget funding, much research and technological development of civilian shipbuilding have been carried out, and re-equipment of domestic enterprises is underway. The government encourages ordering from domestic shipyards, as well as the use of ships sailing under the national flag.

However, the goals set in government programs are not just numerous but also diverse. This results in substantial problems with coordination at various levels, and it often hampers sufficient and timely funding.

The article is written by Elena Efimova, Doctor of Economic Science and Professor of World Economy Department at St.Petersburg State University, and Sergei Sutyrin, Professor and World Economy Department Head at St.Petersburg State University.

Download the latest BSR Policy Briefing here.

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