Intelligence: Russia cut civilian shipbuilding program by 42% in favor of submarines

According to intelligence, the Russian government is cutting the preferential leasing program for the civilian fleet by 42% to $1.68 billion.

The program is being cut against the backdrop of rising construction costs and the Russian Federation’s budget deficit, the Foreign Intelligence Service of Ukraine reports.

In particular, this means reducing 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 cuts are the increase in the cost of components, violation of ship delivery deadlines, and competition with military programs for limited resources. To date, the state leasing company has not transferred any of the planned dry cargo ships,” the report says.

The intelligence also noted that the cuts threaten the renewal of the civilian fleet, which annually requires at least 200 new ships to ensure the transportation of grain, oil, and metal, in particular on the Arctic and Caspian routes. The shortage of modern ships will only worsen.

Instead, the military fleet remains a priority: in six years, the Russian Navy has received five Borei-A submarines and four Yasen-M submarines.

Read also: The death of the deputy commander of the Russian Navy has exacerbated the management crisis in the Russian fleet – British intelligence.