Russian shipbuilding enterprises maintained a high pace and demonstrated significant manufacturing growth during 2025, delivering 131 civilian vessels to customers that year. Anton Alikhanov, the Minister of Industry and Trade of Russia, stated that domestic shipbuilding has confidently surpassed the threshold of delivering more than 100 ships annually.
These deliveries comprise a wide variety of vessels, including ancillary maritime craft, cargo ships, and passenger ships. These figures suggest that Russian shipyards have maintained and increased their production capabilities in defiance of the substantial external pressures and sanctions that have impacted their access to foreign technologies and supply logistics.
Strategic Programs and the Icebreaker Fleet
The expansion of the icebreaker fleet is a critical component of domestic manufacturing development, as it is essential for the year-round navigation of the Northern Sea Route. The third serial nuclear icebreaker, “Yakutia,” was commissioned by Russia during the reporting year. This vessel has a power output of 60 MW. The fourth and fifth icebreakers of the Project 22220 class, which serve as the foundation of Russia’s heavy nuclear icebreaker fleet, are currently under construction.
This class of icebreakers is indispensable for the implementation of the state’s Arctic infrastructure development strategy, which involves the support of major northern energy initiatives and the maintenance of uninterrupted year-round navigation across the Northern Sea Route.. This emphasis is indicative of Russia’s intention to fortify its strategic presence in the Arctic as a transportation and economic center.
LNG carriers are becoming an increasingly critical segment of civilian shipbuilding, in addition to icebreakers. The head vessel of a new generation Arc7 class, which is capable of cruising in Arctic waters, has been completed and delivered by Russian yards. This is a critical stage in the development of large-tonnage ocean-going energy transport vessels that can operate year-round.
A Milestone: Russia’s Own LNG Carrier Delivered and Operating
Russia’s shipbuilding industry effectively completed and delivered its first domestically built Arc7 ice-class LNG carrier, the Aleksey Kosygin, in late December 2023, in contrast to previous plans that expected delivery only in 2025. This ship was promptly transferred to the state-owned transport company Sovcomflot and began operations.
The Aleksey Kosygin is the first LNG tanker of its class to be entirely domestically constructed. It is capable of independently navigating through thick polar ice without the assistance of an icebreaker and is designed to transport liquefied natural gas in severe Arctic conditions. This vessel is an important success for Russian shipbuilding, as it has a capacity of over 172,000 cubic meters of LNG, a length of approximately 300 meters, and propulsion systems that are designed for ice-class operation.
The Aleksey Kosygin successfully completed its inaugural Arctic LNG delivery in early February 2026, sailing from the Gydan Peninsula to the Saam floating storage facility near Murmansk. This accomplishment validated the vessel’s operational availability and strategic utility in winter-capable LNG logistics.
This delivery is an important moment for the energy sector of Russia. Given the historical reliance on foreign-built vessels and the operational constraints imposed by ice conditions, the new carrier is a critical step in enhancing the year-round capability of Russia’s LNG export infrastructure and supporting the Arctic LNG 2 project logistics.
In the future, further expansion of Russia’s capacity to convey LNG from Arctic facilities throughout the year is anticipated with the completion and delivery of additional Arc7 class carriers in 2026.
Long-Term Strategy: National Objectives and Domestic Shipbuilding
Mastering the large-tonnage shipbuilding segment is a Russian government priority in its national development strategies. These strategic objectives are not only validated by the successful delivery and entrance into service of the Aleksey Kosygin, but they also expedite the construction of a fully domestic fleet of advanced LNG carriers that are capable of operating year-round across Arctic routes.
In spite of this achievement, the cost of shipbuilding in Russia continues to be substantially higher than that of major global competitors such as China. This presents a challenge to international competitiveness and underscores the necessity of better production efficiency.
Digital Transformation and Modernization of the Shipbuilding Industry
The United Shipbuilding Corporation (USC) has implemented a comprehensive modernization strategy that prioritizes digital transformation, process efficiency, and workforce enhancement in conjunction with its increased output.
The Production System for Russian Shipbuilding (PSRS) is a strategy that emphasizes five critical areas: the optimization of supporting processes, the development of human capital, the optimization of project management, the efficiency and lean manufacturing of production and equipment management, and the optimization of human capital. A significant emphasis is placed on digitalization, which includes automated project management systems, knowledge-sharing platforms, and design modularity. The objective is to enhance quality while simultaneously reducing costs and construction timeframes.
The establishment of a unified digital ecosystem that encompasses the entire lifecycle of ship production, from design to operation, is a critical element of this transformation. This encompasses the creation of domestic digital production control systems and computer-aided design tools, which will reduce dependence on foreign software and establish a technology infrastructure that is tailored to the requirements of Russian yards.
It is crucial to note that this transition necessitates a new generation of engineers who are adept at information management and digital tools. USC has initiated partnerships with technical universities and educational programs to cultivate the requisite human capital for future shipbuilding challenges.
Structural Reform: Revamping Inefficient Assets
Challenges persist as a result of economically inefficient and underutilized shipyards, despite positive trends in deliveries and modernization efforts. Plans to identify and restructure or phase out unproductive yards have been disclosed by USC leadership. The objective of this initiative is to optimize industry capacity and concentrate resources on facilities that can meet national priorities. It will be presented to the Russian government and the president.
The necessity of meticulous restructuring to preserve employment and redirect industrial assets toward viable production objectives is exemplified by certain historical shipyards that currently only perform minor maintenance work or have no active orders. Simultaneously, strategies such as privatization or regional investment are being examined in order to revitalize specific assets within new frameworks.
International Competitiveness and Future Prospects
Russia’s shipbuilding strategy is bold in the long term. Over the next decade, the construction of thousands of vessels is anticipated, including cargo ships, passenger vessels, fishery fleets, and specialized polar infrastructure components.
However, the widespread adoption of LNG carriers and other large ships that are built domestically necessitates ongoing technological innovation, enhanced cost efficiency, and sustained investment. The integration of sophisticated digital systems and lean manufacturing practices is anticipated to be instrumental in improving global competitiveness.
The delivery and operational use of the Aleksey Kosygin are indicative of Russian shipbuilding’s advancement toward these objectives, as they represent a significant improvement in domestic engineering capability and strategic autonomy in Arctic maritime logistics.
In conclusion,
The results of 2025 and early 2026 are indicative of more than just the Russian shipbuilding industry’s robust production figures. The maturation of the industrial base, which is capable of meeting domestic demands and contributing to strategic sectors such as Arctic energy exports, is indicated by the delivery of 131 vessels, including the first completely domestically built Arc7 LNG carrier.
The industry is currently in the midst of a complex transition, as modernization and restructuring initiatives persist. This transition involves the delicate balance of historical shipbuilding traditions, innovation, digital transformation, and strategic reorientation to address future maritime challenges.