Against the backdrop of rising construction costs and a budget deficit, the Russian government is cutting its preferential leasing program for the civilian fleet by 42% – down to $1.68 billion. This means a reduction in the shipbuilding plan from 260 to 191 units. In December 2024, the Kremlin had already cut this program by 33 ships.
The main reasons for the reduction are rising component costs, delays in vessel deliveries, and competition with military programs for limited resources. To date, the state leasing company has not delivered a single one of the planned dry cargo ships.
The cutback puts at risk the renewal of the civilian fleet, which requires at least 200 new vessels annually to ensure transportation of grain, oil, and metal—particularly on Arctic and Caspian routes. The shortage of modern vessels is only expected to worsen.
Meanwhile, the military fleet remains a priority: over the past six years, the Russian Navy has received five Borei-A nuclear missile submarines and four Yasen-M submarines.
