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USC shipyards may stop production due to lack of financing

USC shipyards may stop production due to lack of financing 19.08.2011
Text: World Arms Trade Analytic Center
Photo: RusNavy.com
JSC United Shipbuilding Corporation (USC) may even shut down production at three largest shipyards because of problems with placement of state defense orders, reports RIA Novosti referring to a USC spokesman.

According to the source, "as of today, Sevmash, Zvezdochka, and Admiralteyskie Verfi shipyards are on the brink of full suspension of production", reports RIA Novosti.

The spokesman said that "if the problems with defense ministry are not settled in the nearest time, in September the mentioned shipyards would not have money to pay their workers".

As for him, "even now we have almost zero profitability in defense orders, we can't go into the red", reports RIA Novosti.

Earlier on, ITAR-TASS covered the situation in USC referring to official letters addressed by directors of Sevmash, Zvezdochka, and Admiralteyskie Verfi to defense minister Anatoly Serdiukov.

In particular, the letters available to ITAR-TASS say that "the volume of non-signed defense shipbuilding contracts exceeds RUR 40 bln in 2011".

The USC told to ITAR-TASS that the company also addressed a letter to defense minister requesting to settle the order issues. "It was proposed in the letter to discuss that question at inter-agency commission", points up ITAR-TASS.

As of today, Russian defense ministry has placed orders almost at all companies except USK.

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