Russian shipyards record RUB42 billion in losses from fishing vessel construction

Shipyards in Russia have collectively incurred losses amounting to RUB42 billion (US$560 million) from the construction of new fishing vessels, the head of the country’s Federal Agency for Fishery (Rosrybolovstvo) recently told local news outlet RBC.

Rosrybolovstvo head Ilya Shestakov said the losses were incurred despite an orderbook totalling 105 vessels to help fulfill investment quotas.

Mr Shestakov added that, of the 105 vessels ordered beginning in 2018, only 14 vessels have been delivered to their respective owners as of February 2023.

Rosrybolovstvo attributes the losses to the Covid-19 pandemic, a lack of skilled labourers particularly in the early stages of the vessels’ construction, and the difficulty of building commercial fishing fleets in comparatively less time and at fixed prices. Also mentioned were changes that were decided upon by shipyards and vessel operators in terms of cost and timetables even after the newbuilding contracts have already been finalised.

Mr Shestakov remarked that it may be necessary to implement some form of rehabilitation to help the shipyards in addressing financial difficulties.