Lenta.ru: Igor Sechin has suggested creation of a shipbuilding monopoly

(Original article at www.lenta.ru. English translation by the NRCC)

04 August 2015

In his letter to Russian President Vladimir Putin, Igor Sechin, the head of Rosneft, has suggested that legislative measures should be introduced to generate orders for Zvezda Shipyard. The above is reported by Kommersant Newspaper with reference to a copy of Sechin’s letter.

Sechin proposes to encourage all Russian companies – such as Gazprom, Novatek, Lukoil and others – to place construction orders for marine vessels and machinery in Russia and create a unified site where all the orders could be gathered, with the Far Eastern Shipbuilding and Ship Repair Center (FESRC) at its core. Zvezda Shipyard is a part of the FESRC.

The oil company has also put forward an initiative that all orders for production of vessels aimed for long-term lease are to be placed at Zvezda shipyard. Besides that, Sechin deems it appropriate to introduce a net worth tax for the companies using vessels built abroad, and oblige Russian companies that buy vessels abroad, from 2019 to place shipbuilding contracts at Russian shipyards as well. It has also been suggested to include a requirement of 70 % local content for marine equipment in all off-shore licenses.
Kommersant underlines that Rosneft is thus trying to breathe a new life into the idea to gather all off-shore production contracts at Zvezda. According to newspaper’s sources, President Putin requested that the Government should develop a list of measures aimed to support shipbuilding industry based on initiatives suggested by Rosneft.
In the beginning of July, Rosneft and Gazprom have finalized all the procedures in connection with their entering in the FESRC, uniting a number of industrial enterprises in the Far East region. The companies are developing an industrial and shipbuilding cluster based primarily on FESRC with Zvezda Shipyard at its core.
Zvezda is supposed to become Russia’s first shipyard for production of large capacity vessels processing up to 330 000 tons of metal annually. The project is scheduled to be completed in 2019 and is developed by Rosneft and Gazprom owned joint venture - Modern Shipbuilding Technologies. It is expected that this project will result in a raise of a new industrial cluster in the Far East which will be beneficial for all related industry sectors.
Development of the new shipbuilding cluster is planned in three stages. The first includes production of medium range vessels and marine equipment, the second – construction of dry dock and complete production cycle facilities for large capacity vessels. The third stage comprises construction of dry dock with production facilities for building of off-shore equipment in “Pyat Okhotnikov”-bay




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