VEB Group’s Team Visits Zvezda Shipyard in Primorie to See Construction of Aframax Oil Tankers
During a visit to the Primorie Territory, VEB Group’s team was invited to see the Zvezda shipyard. The shipyard started the large-scale construction of Aframax oil tankers, which had not previously been built in Russia.
Tanker deadweight tonnage is 114,000; the ice class (1A/1B) will enable the ships to be used for year-round navigation in ice-bound conditions. The propulsion systems of the green tankers allow them to use both conventional fuel and environmentally friendly natural gas, which ensures compliance with the new pollution control rules for the Baltic Sea and the North Sea. The first tanker launching is scheduled for 2020. At present, the shipyard has orders for 12 Aframax oil tankers.
The Zvezda product range will include vessels with a displacement of up to 350,000 tonnes, components of offshore platforms, ice class vessels, merchant cargo vessels, special vessels and other marine equipment of any complexity, including equipment that had not previously been made in Russia due to the unavailability of launching and hydraulic facilities.
During the Eastern Economic Forum, VEB Group, Rosneft, Zvezda and Sovcomflot entered into several contracts to build two oil tankers for subsequent long-term chartering. In late October 2018, the Supervisory Board of VEB resolved to approve the transaction.
“Support for this sector has a positive impact on the development of related industries, which is a priority for VEB Group as a development institution. VEB.RF is currently considering eight projects aimed at developing the shipbuilding industry in the Primorie Territory; VEB Group’s potential investments are more than 200 billion roubles. The launched projects will create new jobs and improve quality of life,” VEB.RF Chairman Igor Shuvalov emphasised.
VEB Group’s team also visited the construction site of residential houses for future employees of the Zvezda shipyard in Bolshoy Kamen. Two 68-flat houses have already been accepted for operation and occupied. Construction is well under way for a whole urban block in the 6th residential estate. The contractor was selected for the construction of residential houses in two more neighbourhoods. Overall, there are plans to build about 5,000 flats by 2023, which will provide housing for all employees. The possible expanded involvement of the Far East Development Fund (part of VEB Group) in residential construction projects to provide houses for Zvezda employees is under consideration. In collaboration with DOM.RF, the Fund is carrying out the project as instructed by the Russian President.
A session of the Federation Council passed legislation to change the name of State Corporation Vnesheconombank to VEB.RF, introducing several new functions, such as its role as a development institution coordinator.
The amendments are to be made to the Federal Law On the Bank for Development and certain legislative acts of the Russian Federation.
The law changes the name of State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” to State Development Corporation VEB.RF.
The law also assigns new functions to VEB.RF to coordinate the development institutions’ activities as resolved by the Russian Government.
Another law amends the Budget Code. The Government will approve resolutions concerning the authorised capital of VEB.RF in the form of paid-in capital and the amount of its authorised capital that should subsequently additionally be contributed by the Russian Government (callable capital).