Russia’s ambitious new river-sea cargo vessels construction program has been scaled back, with orders reduced from 34 vessels to 18. The Moscow Times noted that high interest rates, import substitution policies, and sanctions are among the factors driving the downsizing of this government-subsidized shipbuilding initiative.
In June 2023, Krasnoye Sormovo Shipyard, part of the United Shipbuilding Corporation (USC), signed a contract to build new river-sea dual-purpose cargo vessels, planning to construct 34 RSD 59 dry cargo vessels.
The RSD 59 dry cargo vessel measures 141 meters in length and is designed to transport general cargo and bulk goods, including grain, coal, timber, scrap metal, metal products, and oversized cargo. It aims to advance the modernization and upgrading of the Volga-Donmax shipping route.
The shipbuilding project is reportedly the largest series order in United Shipbuilding Corporation’s history. The Russian government had originally planned to collaborate with the lending institution GTLK to provide the majority of the construction funding for the project.
However, according to Russian media outlet Vedomosti, following the December 2025 budget revision, the order size for this shipbuilding project has been reduced from 34 vessels to 18. Government funding has been cut to approximately $300 million, while the unit cost per vessel has risen from $16.4 million to nearly $22 million.
Regarding the delivery schedule, after the first batch of five RSD 59 dry cargo vessels were completed and delivered, Krasnoye Sormovo Shipyard started construction on the second batch of vessels of the same type in September 2024 and completed the keel laying in November 2024.
However, according to The Moscow Times, Krasnoye Sormovo Shipyard failed to deliver any new vessels throughout 2024, with project timelines severely delayed. Current delivery dates have been pushed back to 2028. The shipyard had previously planned to increase investment in 2025 to boost production capacity, targeting an annual output of 20 dry cargo vessels.
The report noted that Western sanctions were another major factor behind the scaled-back construction of Russia’s new river-sea dual-purpose cargo vessel project. Western sanctions against Russia include provisions targeting the Russian shipbuilding industry, restricting imports of Western-made equipment.
In response to Western sanctions, Russia’s shipbuilding industry is pursuing domestic substitution. In May 2025, it announced a commercial vessel expansion plan, pledging over $6 billion to expand and modernize Russia’s commercial shipbuilding sector.