Deputy PM says Russian shipbuilding program at risk

PanARMENIAN.Net - The Russian government is ready to step in to sort out the crisis in Russian naval shipbuilding which is threatening to derail the defense procurement program, Deputy Prime Minister Dmitry Rogozin said on Friday, May 24, according to RIA Novosti.

The government’s direct intervention in the situation is the only way of averting further problems, he said at a meeting with shipbuilding company heads.

“I can see only one option: Direct dialog between the government, the United Shipbuilding Corporation, and private companies working in this field to ensure that all plans are implemented and all problems that have emerged recently are rectified,” said Rogozin, who oversees the defense industry.

“We are planning to sink, and have already sunk big money into shipbuilding but I can’t see any payoff yet,” he said.

Rogozin made his comments the day it was revealed the United Shipbuilding Corporation (USC) is looking for money that was allocated to complete the Nerpa nuclear submarine for India’s Navy. A total of 500 million rubles ($15.9 million) has been lost.

He urged shipbuilders to employ specialists from abroad if they cannot find enough at home and promised to facilitate the granting of Russian citizenship to experts from other countries.

USC, established in 2007, is Russia’s largest shipbuilding and ship repair company. It comprises nine design bureaus and 39 shipyards. USC currently accounts for 70 percent of the domestic shipbuilding industry, according to its website. The corporation is wholly owned by the state.