Shipbuilding and ship repair in the Arctic discussed at SPIEF

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Russia | India (NewsView)
Participants of the International Seminar on Shipbuilding and Repair in the Arctic, held within the framework of the St. Petersburg International Economic Forum, discussed the construction of ships and the modernization of the existing fleet for use in polar regions. The event was part of the Russian Arctic Council Chairmanship plan and was organized by the Roscongress Foundation.

According to the First Deputy Minister of the Russian Federation for the Development of the Far East and the Arctic Gadzhimagomed Guseynov, one of the main challenges facing shipbuilding and repair is the goal set by the President Russian Vladimir Putin to transport at least 80 million tons of goods along the Northern Sea Route by 2024 and 150 million tons by 2030. He stressed that such volumes require large investments and the building a fleet.

“We are currently experiencing a shortage of ship repair facilities, particularly in the Arctic and the Far East. There are a number of fundamental tasks that we have to solve here,” Guseynov said. He mentioned that there were preferential regimes in place in the region, notably pointing to the benefits of insurance premiums available for companies resident in the Arctic zone at 7.5% instead of the usual 30%. Income tax preferences also exist, as well as the possibility of a free customs zone procedure providing for 0% VAT on goods placed under the STZ procedure. However, the First Deputy Minister of the Russian Federation for the Development of the Far East and the Arctic stressed that in addition to the existing incentives for ship repair companies, a 0% VAT was essential.

For one reason or another, shipowners prefer to have their ships repaired abroad. According to Alexey Rakhmanov, chairman of the board and CEO of United Shipbuilding Corporation, one of the reasons is that the ownership of the ships falls under foreign jurisdiction. “We need to make the Russian flag convenient for navigation, and this will contribute to the development of domestic ship repair,” he said. By setting VAT to zero, shipowners would benefit from 20% when they have their repairs carried out in Russia instead of Norway, Rakhmanov summed up.

Arkhangelsk Region Governor Alexander Tsybulsky noted that about half of all foreign ports are closed to repairing Russian ships, and Indonesia and Turkey have significantly raised prices for related work. “Not only are prices becoming more competitive here, but we can already do the job for less,” Tsybulsky said.

The International Shipbuilding and Repair Seminar was also attended by Evgeny Ambrosov, Deputy Chairman of the Board of NOVATEK and Chairman of the Arctic Economic Council, Boris Kabakov, Director of the Industry Department of the Shipbuilding and Marine Equipment of the Ministry of Industry and Trade of the Russian Federation, Olga Kuznetsova, Deputy Governor of the Murmansk region, VyacheslavRuksha, Deputy Director General and Director of the Sea Route Directorate of the North of the State Atomic Energy Corporation Rosatom, and Igor Tonkovidov, Managing Director and Chairman of the Board of PAO Sovcomflot.

Developing safe Arctic shipping along the Northern Sea Route is a priority of the Russian Chairmanship of the Arctic Council in 2021-2023. Russia considers it important to make sea routes in the polar regions safe and efficient from an environmental and economic point of view. The Russian side supports cooperation in the training of highly qualified maritime personnel for work in the Arctic and the development of unified educational standards in this area, as well as ensuring the readiness of rescue services and units and the development of communication and navigation facilities.

Reference information

Official social media accounts of the Russian Chairmanship of the Arctic Council

VKontakte: vk.com/arctic_on

Twitter: twitter.com/ArcticON1

Telegram: t.me/arciconofficial

Weibo: weibo.com/u/7728847725

WeChat ID: arcticonofficial

The Roscongress Foundation is a non-financial development institution with a social purpose and a major organizer of national and international congresses; exhibitions; and commercial, public, youth, sporting and cultural events. It was established pursuant to a decision of the President of the Russian Federation.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests and enhancing the country’s image. One of the Foundation’s roles is to comprehensively assess, analyze and cover issues on the Russian and global economic agenda. It also offers administrative services, provides promotional support for business projects and attracts investment, helps to promote social entrepreneurship and charitable initiatives.

Each year, Foundation events attract attendees from 208 countries and territories, with more than 15,000 media representatives working onsite at the various Roscongress venues. The Foundation benefits from the analytical and professional expertise of 5,000 people working in Russia and abroad.

The Foundation works alongside various United Nations departments and other international organizations, and builds multi-format cooperation with 166 economic partners, including industrial and entrepreneurial unions, financial, trade and business associations from 76 countries. of the world and 154 Russian public organizations, federal and legislative agencies, and federal subjects.

The Roscongress Foundation has Telegram channels in Russian – t.me/, in English – t.me/ and in Spanish – t.me/.

Official site and information and analysis system of the Roscongress Foundation: roscongress.org.

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