The document summarizes business opportunities in the Russian shipbuilding industry for Finnish companies. It notes that Russia plans to build over 1000 new vessels through 2035 across various sectors like fishing, offshore oil/gas, and transport. Major state-owned companies like Rosneft and Novatek are investing heavily in new shipyards and orders. While sanctions create challenges, opportunities remain for Finnish design, shipbuilding, equipment/components where localization can be 30-80%. The document outlines several marine industry events in Russia supported by Business Finland and introduces a consulting group that can help Finnish companies explore opportunities in the Russian market.

1. BUSINESS
OPPORTUNITIES
IN RUSSIAN
SHIBUILDING
INDUSTRY
Turku, Navigate 2018
Alexey Zak
Zak Consulting Group

2. Russian shipbuilding. Key figures
Russian shipbuilding industry:
• 133 shipyards and other production companies,
• 49 design and research companies
• Total headcount about 170 000
Subcontractors of shipbuilding industry:
• About 2000 companies
• Total headcount about 530 000
Number of vessels:
• Yearly about 60 ships to be delivered to the customers, about
40 under construction

3. Needs for civil vessels and
other equipment in Russia for 2017-2035
According Russian experts, until 2035 Russian maritime industy will need 1014 vessels, including
• 10 nuclear icebrakers
• 26 diesel and diesel-electric icebrakers
• 351 trowlers and other fishing vessels
• 30 offshore objects
• 45 Tankers, VLCC’s
• 50 supply vessels
• And number of other vessel types

4. Russian icebreakers
Ship owner Icebreakers under
operation
Icebreakers under
construction
Rosatomflot 4 4
Rosmorport 22 1
Rosmorrechflot 3
Ministry of defence - 1
Murmansk Shipping Company 1 -
North Shipping Company 1 -
Femco 1 -
Sovcomflot 5 2
Gazpromneft - 2
Lukoil 1 -
Gazprom 2 -

5. Building of new fishing fleet of Russia at
Russian shipyards
• Priority for fishing companies, ordering new fishing vessels
in Russia
• 42 vessels already ordered. Total value about 1,2 bln.
Euros.
• Localization level 50%
• Shipyards involved: Vyborg, Pella, Severnaya, Yantar

6. Zvezda (Star) shipyard
• Biggest Russian civil shipyard in the future
• Control by Russian state oil major Rosneft
• Specialization: vessels for transportation of
hydrocarbons, service vessels for offshore, offshore
objects.
• Foreign partners: Hyundai, Damen
• Orders: 14 vessels, including Aframax-class tankers,
icebreaker, service and supply vessels for offshore
projects
• Goal of Rosneft management: to build more than
130 vessels and offshore object at the shipyard
until 2035

7. Arctic LNG-2 project. Novatek
• Yamal LNG and Arctic LNG-2 projects with total
capacity 32 mln q.m. of LNG a year. Investments in
Arctic LNG-2 about 25,5 bln USD (preliminary
evaluation)
• First deliveries of LNG to the customers in 2017
• Kola shipyard under construction
• Need for about 15 new VLCCs
• Negotations on buillding of LNG production moduls at
Russian shipyards (number of shipyards, including
shipyards from Arkhagelsk area, St. Petersburg,
Astrakhan competing for these orders)

8. Key challenges for Finnish
companies
• Sanctions
• Gowth of protectionism in all parts of value chain (oil and gas
exploration, transportation, shipbuilding and offshore
industry, production of equipment, solutions and
components, design)
• Priority for equipment, solitions and components, made in
Russia in state owned companies’ procurements
• Customs
• Local sertification: Russian Maritime Register, River Register

9. Business opportunities for Finnish companies
• Design, especially for ice class vessels
• Shipbuilding
• Ship equipment, solutions and components for ships,
including propulsion and main engines
• Imported content 30-80%
• Production equipment for shipyards
• ICT-solutions
• Dozens of Finnish companies export their products to
Russian shipbuilding cluster

10. Why Russia?
• Big size of the market
• Suitable location
• Suitable types of vessels, including icebreakers and ice
class vessels
• Leading role of St. Petersburg and North-West Russian
shipbuilding cluster in ice class vessels design and
construction
• Excellent image of Finnish products and Finnish
businessman
• Long history of cooperation between Russia and Finland
• Business support services, provided by Business Finland

11. Russia
Marine/offshore events in 2018, supported by
Business Finland
Event City, venue Dates
Big Port of St. Petersburg Conference
FIN-RUS ICT workshop
St. Petersburg, Sokos
Olympia Garden
23-24.5
Arctic Shipbuilding forum Arhangelsk 14-15.6
Visit of Russian shipbuilding cluster companies
to Finland
tbc End of September-beginning of
October
Offshore Marintek Exhibition and conference St. Petersburg,
Expoforum
2-5.10

12. Zak Consulting Group
Services for starting and developing export to
Russia, provided by team of 5 industry experts
• Free of charge advising
• Market research
• Marketing and sales plan for the Russian market
• Marketing materials for the Russian market
• Customer and partner search
• B2B meetings and business trips to Russia
• Sourcing and local production in Russia
Alexey Zak
CEO, Senior Advisor
Mob +79219920051
Alexey.zak@zcg.ru
Suomi-talo, office A305, Ul. Bolshaya
Konushennaya 8, St. Petersburg, Russia
www.zcg.fi

13. THANK YOU!