Two of Russia's largest shipyards to merge

Russian oil and gas company Rosneft and Saint Petersburg-based VTB Bank have begun discussions related to the confirmed merger of the shipyards managed by each of the two firms.

The two shipyards set to merge are Rosneft subsidiary Zvezda Shipbuilding Complex (ZSC) and United Shipbuilding Corporation (USC), which is 100 per cent owned by the Russian government and held in trust by VTB. The planned merger has received approval from Russian President Vladimir Putin.

The merger is being undertaken with the aim of improving the efficiency of Russia's shipbuilding industry, particularly in the country's Far East, in the face of sanctions imposed by the West. Upon completion of the merger, ZSC will become part of USC.

ZSC specialises in the construction of large commercial vessels such as tankers as well as icebreakers. More than 20 ships are currently under construction as its facilities in Bolshoy Kamen, while another 60 ships with a total deadweight tonnage of more than three million are on order.

USC meanwhile consists of more than 40 different enterprises including shipbuilding and ship design companies. Some of the more notable vessels designed and built by the various enterprises include naval surface ships, submarines, fishing vessels, cruise ships, Ro-Pax ferries, and commuter ferries.