AsianOil: Russia's struggling shipbuilding industry seeks Chinese partnership

The struggles of Russia's shipbuilding industry have been no secret as it grapples with a series of challenges, including the impact of sanctions cutting off foreign components and expertise, workforce limitations, and delays in project deliveries. Faced with these issues, the Russian government is actively exploring new avenues for a solution. At the top of this list appears to be closer interaction with a long-time ally in Asia.

An important move in August that was missed by many saw the Kremlin transfer control of the state-owned United Shipbuilding Corporation (USC) to VTB, Russia's second-largest banking institution. This was done in the hope of orchestrating a turnaround in USC’s shipbuilding activity. VTB chief Andrey Kostin, the man now at the helm of USC, has since put forward an ambitious proposal: USC should forge a partnership with China, a global leader in shipbuilding, as he revealed in an interview with South China Morning Post (SCMP) this week.

“We are coming to China because it is the number one shipbuilder globally. We need co-operation with China," Kostin told the SCMP at a Belt and Road Initiative (BRI) conference in Beijing. "I’ll probably return in November to meet with Chinese companies, we might even look to build a new shipyard with China," he added.

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