The Russian USC’s shortfall in ship production funds reaches almost $10 billion

This is allegedly due to the fact that the contract price is lower than the cost of ship production.

The Russian United Shipbuilding Corporation (USC) estimates the deficit of funds for the completion of orders at more than 1 trillion rubles ($9.712 billion). This was stated by USC CEO Andrei Puchkov.

According to the Russians, this state of affairs is due to the fact that the cost of ship production is higher than the contract price. This, in turn, leads to a deficit.

Now USC is hoping for “state support” and is negotiating with private and state customers to revise the price.

Reference: JSC United Shipbuilding Corporation is the largest state-owned shipbuilding holding in the Russian Federation. USC includes more than 40 Russian enterprises. The holding develops 80% of all shipbuilding projects in the Russian Federation. In particular, it is USC that builds ships used to shell Ukrainian cities. Some of the holding’s ships were built at factories in illegally annexed Crimea.

USM previously wrote that the Russian Ministry of Defense is suing one of the leading shipyards for unbuilt frigates.