STATE AND PROSPECTS FOR  DEVELOPMENT OF THE FAR EAST SHIPBUILDING COMPLEX

Artyom S. Komarov

Admiral Nevelskoy Maritime State University, Vladivostok

Denis M. Gnativ

Admiral Nevelskoy Maritime State University, Vladivostok

Abstract: In the article there have been studied materials on the current state of shipbuilding and ship repair enterprises in the Russian Far East. An analysis of development prospects for these enterprises has been carried out. The focus is made on the regional business through the prism of financial stability, judicial risks, impact of sanctions and readiness to implement promising projects. 

Keywords: Far East, shipbuilding, ship repair, analysis, finance situation, judicial proceedings, sanctions, development prospects.

Introduction 

The shipbuilding in the Russian Far East may be designated as a strategic element of national economics and security. It plays a key role in strengthening Russian maritime power, development of Arctic and Pacific communication routes as well as ensuring region’s sustainable economic growth. 

In the context of rapid changes in the global political landscape, the implementation of sanctions and stricter environmental regulations, an analysis of situation and prospects for this industry becomes  particularly important.

Today the shipbuilding industry is actively developing integration of innovations and international experience in order to maintain Russia’s status as a maritime and shipbuilding power. Currently, in the Far East there operate 15 enterprises. (Fig. 1).

The Far Eastern enterprises of shipbuilding and ship repair complex may be divided according according to key features:

1. By type of activity: а) Shipbuilding; b) Ship repair; c) Mixed-type.

2. By scope of application: а) Military shipbuilding/ship repair; b) Civil shipbuilding/ship repair; c) Fishing; d) River navigation; e) Oil and gas projects

3. By specialization: а) Export-oriented; b) Arctic projects; c) Related projects

Analysis of the current state of enterprises

Analysis of the current state of enterprises in shipbuilding and ship repair complex was carried out according to the financial situation, number of legal disputes and the impact of sanctions.

Financial situation 

The estimation of financial situation was carried out according to 8 features: clear profit, revenue, profitability of revenue, profitability of assets, fast liquidity, current liquidity, autonomy, investment coverage [1][4][5]. As an example below is the Table 1 with the data from some enterprises. 

Table 1. Example of the data analysis from some enterprises

Name of organization	Clear profit	Revenue	Profitability of  revenue	Profitability of assets	Fast liquidity	Current liquidity	Autonomy	Investment coverage
JSC «Primorsky Zavod»	196,5 mln. rubles (+139%)	603 mln. rub (+68%)	32,6%	17,66%	1,99	3,02	0,91	0,92
Shipbuilding corporation «ZVEZDA» (2020)	-4,2 billionrubles ( -5%)	11,1 billion rubles (+122)	-37,55%	-1,53%	2,41	2,61	0,22	0,78
Amur Shipbuilding Plant» (2023)	-1,4 billion rubles (-39%)	24,03 billion rubles (+23%)	-11,32%	-0,82%	0,1	8,23	–	–

Court litigation  

Shipbuilding is accompanied by organizational and financial risks, which leads to litigation. The analyzed data on the number of trials are shown in Histogram 1 [2][3]: 

Sanctions influence 

The analysis shows that adaptability is a key factor for survival in the situation of sanctions. This includes:

1. Diversification of supplies and markets – to avoid relying on one region or customer;
2. Localization of production — to minimize import dependence through the creation of own supply chains;
3. Government support – preferential lending programs subsidizing localization, tax benefits;
4. Investments in R&D — development of alternative technologies, reduction of dependence on Western patents.

However, even enterprises that survived the crisis of 2022-2023 cannot count on eternal stability. Sanctions may get tougher, and the global economy will continue to transform. Long-term risks include:

• Decrease in product quality due to outdated technologies;
• Competition with foreign companies, that may return to the markets after restrictions are relaxed;
• Building up debts due to the need to invest in upgrades without access to external funding.

Thus, the crisis of 2022 has become not just a challenge for companies, but also an accelerator for processes that will shape their place in the new economic reality. Those who are able to adapt will have the opportunity to become leaders in domestic sector, but this will require ongoing development and preparation for future challenges.

(End of introductory fragment)