There's a project in the works
Running Dry: Major Projects Stutter Due to lack of Immediate Profit
Financing grand, intricate projects that are critical for the nation's future but lack quick profitability is becoming increasingly challenging. Shipbuilding is a prime example, with a deficit of over 10 trillion rubles anticipated during the period up to 2030. Besides this, around 1 trillion rubles is needed for the modernization of shipyards in St. Petersburg and construction of new manufacturing facilities [Source: Unnamed1].
Dividends from VТB Group's state-owned shares will be directed towards the recapitalization of the shipbuilding sector for the upcoming five years, according to Andrey Kostin, CEO of VТB. This amounts to 500-750 billion rubles [Source: Unnamed2]. Additionally, 500 billion rubles will be allocated by the federal budget to support ship manufacturers and their clients over the next five to six years [Source: Unnamed3]. The remaining trillion is earmarked for development, and it remains uncertain how this sum will be raised.
A similar funding predicament surrounds the national project "New Atomic and Energy Technologies," requiring 1.4 trillion rubles worth of investment [Source: Unnamed2]. Although budget funding has been confirmed at 190.5 billion rubles, an additional 230 billion has been granted [Source: Unnamed2]. However, Rosatom, the state-owned corporation responsible for securing the remaining funds, faces significant obstacles in attracting funding, as Alexei Likhachev, CEO of Rosatom, stated, "In today's financial climate, this is challenging." This financing hurdle is particularly pressing for floatings atomic power stations, as they lack suitable funding mechanisms for their unique project nature [Source: Unnamed2].
"We need long-term funds and reasonable interest rates on loans," remarked Andrey Nikipelev, deputy general director of Rosatom in charge of mechanical engineering [Source: Unnamed2].
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The industry and business sectors face challenges in financing complex projects with low immediate profitability, such as shipbuilding and new atomic technologies. The shortage of funding for these projects requires long-term funds and reasonable interest rates on loans, as highlighted by Rosatom's deputy general director Andrey Nikipelev.
