Advancing Russia's transport vessel fleet and civil shipbuilding
As of January 1, 2012, additional enabling legislation will be enacted in Russia to create economic conditions for the advancement of Russia's transport vessel fleet and civil shipbuilding in keeping with the federal law On Amending Related Regulatory Acts with Regard to Measures to Support Domestic Shipbuilding and Navigation (hereafter referred to as the “Federal Law”).
Until the end of 2027, Russian shipbuilding companies will be exempted from social security tax on crew wages for vessels listed on the Russian International Ships Registrar. As for the incomes of crewmembers on vessels operating under the Russian flag, a 13% tax rate has been set on their incomes from a Russia-based source, regardless of the period spent outside the country. The previous regulations set a 30% income tax for crews working outside Russia for more than 183 days per annum.
Russia's sea fleet in 2012 acquired 41 new vessels -- a 1.5-fold increase year-on-year. There are 86 ships listed on the register of vessels under construction; 22 are to be completed and launched by the year's end, including five icebreakers (one nuclear-powered and the remaining four powered with diesel and electricity). As of 2013, the Russia-controlled transport fleet grew to 1,441 vessels, with 1,096 operating under the Russian flag. In 2012, 126 ships were transferred under the Russian flag, so now the Russian international ships register includes 679 ships.
As a result of partly subsidised costs in civil vessel acquisition under contractual loan and lease schemes in 2008-2012, Russian ship operators have commissioned the construction of about 70 cargo river and river-sea vessels with domestic shipbuilding companies.
Total investments surpassed $1 billion, making it possible to create about 1,000 jobs in Russian transport companies and preserve over 10,000 jobs at plants and design bureaus. One new job in a ship crew stimulates the creation of three or four jobs in the servicing infrastructure while one preserved factory position stimulates the creation of five or six jobs at counteragent enterprises.
According to expert and business community appraisals, the introduction of privileges provided for by the Federal Law, in conjunction with government subsidies on loan and lease contracts, and fiscal and customs preferences for shipbuilding companies, has created a systemic financial model providing an economic foundation with highly competitive conditions for the advancement of domestic shipbuilding and navigation.