Ukroboronprom presents shipbuilding development strategy until 2030

Ukroboronprom presents shipbuilding development strategy until 2030

28.09.2021 16:55

Ukraine’s state defense conglomerate Ukroboronprom has presented the strategy for the development of Ukraine’s shipbuilding industry until 2030.

The presentation took place at the Ukrinform news agency on September 28.

The strategy was developed by Ukroboronprom together with the Ukrsudprom Association of Shipbuilders of Ukraine. A detailed analysis of the state of military and civilian shipbuilding in Ukraine was conducted to draw up the strategy.

Presenting the strategy, Viktor Plakhuta, Project Manager at Ukroboronprom, said that as of today, there are 18 ships in the Ukrainian Navy. In accordance with the National Security and Defense Council’s decision on the development of the Ukrainian Navy until 2031, Ukraine plans to build patrol and artillery boats, missile boats, corvettes, and a frigate.

The strategy states that a number of steps are needed to implement this decision. In particular, it is necessary to determine a central executive government body responsible for shipbuilding, to ensure maximum localization of production within joint projects with foreign partners, update the scientific and technical base and provide a system of cheap lending for long-term capital-intensive and science-intensive shipbuilding projects for the Ukrainian Navy.

The development of the civilian fleet in Ukraine requires, first of all, the renewal of the fleet of ships. In total, 240 new ships need to be built for domestic needs.

Ukroboronprom estimates that inland waterway transportation in Ukraine by 2030 could be increased to 30 million tonnes per year, which will potentially create 7,500 new jobs and annually bring an additional UAH 16.47 billion to the budget.

To achieve such indicators, it is necessary to adopt a decision of the National Security and Defense Council on measures to develop the shipbuilding industry in Ukraine, amend the Customs and Tax Codes in accordance with this decision, adopt a decision of the National Security and Defense Council to ban ships manufactured in Russia, and to extend the effect of the law on state support for the shipbuilding industry.

In order to increase competitiveness and attract investment in the industry, Ukroboronprom proposes to temporarily exempt from tax and customs burden the goods produced abroad that are used for shipbuilding, to temporarily exempt shipbuilding companies from paying taxes, and to restructure the debts of such companies to budgets and funds.

Ukroboronoprom believes that the shipbuilding industry can be supported by transferring part of the net profit of the Ukrainian Sea Ports Authority to implement an investment program for the purchase of ships, attract an export credit agency to protect Ukrainian exporters, equalize the cost of rail and waterway transportation, and introduce a progressive incentive tax on vessels built over 30 years ago.

“Together with Ukrsudprom, we have developed a draft shipbuilding development strategy, which has already been sent to the National Security and Defense Council and is being discussed today. We expect the project to be considered at the level of the National Security and Defense Council, which will allow shipbuilding companies to receive support from the state. This will create the necessary conditions for a comprehensive and systematic strategic development of shipbuilding in Ukraine in general,” said Yuriy Husyev, CEO of Ukroboronprom.



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