Russia plans to build 500 cargo ships and tankers in 10 years

Russia's United Shipbuilding Corporation (USC) has been tasked with constructing 500 new dry cargo vessels, container ships, and tankers over the next decade. The fleet renewal programme aims to replace ageing Soviet-era ships. Financing will be collected from shipowners through a leasing scheme.

Russia's United Shipbuilding Corporation (USC) has been assigned an ambitious target: build 500 new dry cargo vessels, container ships, and tankers within the next 10 years, according to Russian business newspaper Kommersant. The programme is designed to replace Russia's ageing commercial fleet, much of which dates back to the Soviet era.

The financing model for the project relies on collecting funds from Russian shipowners, who will contribute to a leasing pool to fund the construction. This approach shifts part of the financial burden away from direct state subsidies and onto the commercial operators who stand to benefit from the new vessels.

The scale of the programme reflects Russia's broader effort to develop domestic shipbuilding capacity amid increasing Western sanctions, which have complicated access to foreign-built vessels and ship components. Russia has been pushing to reduce its dependence on foreign shipping infrastructure as international carriers have largely withdrawn from Russian trade routes.

The USC is Russia's largest shipbuilding conglomerate, controlling the majority of the country's shipyards. However, analysts have previously raised doubts about Russian shipyards' ability to deliver large commercial vessels on schedule and at competitive costs, particularly given supply chain disruptions caused by sanctions.