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Russia: Naval: Technology: Research, Design, and Production Facilitites: Baltic Shipyard Russia: Baltic Shipyard

To return to the main entry, see the Research, Design, and Production Facilities file.
 
LOCATION: St. Petersburg
Address: 16 Kosaya liniya, St. Petersburg 199106
Telephone: 812-324-9370
Fax: 812-327-7190
E-mail: info@bz.ru   
["Kontakty," Baltic Shipyard Web Site, http://www.bz.ru/r060_000.htm.] {Entered 9/10/2001 EF}
HOMEPAGE: http://www.bz.ru
[Baltiyskiy zavod Web Page, http://www.bz.ru.] {Entered 4/20/2001 CC}
SUBORDINATION:
While the Baltic Shipyard has been privatized, it remains subject to state policies regarding military and civilian production promulgated by the Russian Shipbuilding Agency, and a share of its stocks are held by the state.
[Russian Government Decree No. 878, Voprosy Rossiyskogo agentstva po sudostroyeniyu, 30 July 1999; in The Legislation in Russia, http://law.optima.ru.] {Updated 7/25/2000 CC}
ADMINISTRATION:
General Director: Oleg Borisovich Shulyakovskiy
Deputy General Director:  E.I. Koshelev
Deputy Manager:  Y.I. Lopatin
[U.S. Department of Commerce, Bureau of Export Administration, Directory of Russian Defense Enterprises in St. Petersburg and Leningrad Oblasts - Part 1 online edition, http://iepnt1.itaiep.doc.gov/bisnis/defense/9607spd1.html, July 1996.]
MPC&A:
This site participates in the US Department of Energy MPCA program.
[CNS Correspondence with Department of Energy, 4 March 1999.] {Entered 6/9/99 PBI}
ACTIVITIES:
Formerly known as Shipyard 189, the Baltic Shipyard constructed nuclear surface vessels, including nuclear icebreakers.[1] Projects at the Baltic Shipyard, also known as Baltiyskiy Zavod, include a floating nuclear power plant for the Russian Far East, underground NPPs, and the 50 Let Pobedy (50 Years of Victory) Arktika-class nuclear icebreaker.  As of 1998, the Russian Ministry of Defense had not disbursed the funds necessary to finish it and has still not paid for the nuclear-powered cruiser Petr Velikiy (Peter the Great), also built at the Baltic Shipyard.[2] (For more information on the 50 Let Pobedy, see the 3/2/2000 entry below. (For information on icebreaker developments please see the General Civilian Naval Reactor Developments file.)  
Sources:
[1] Robin Lee, "Ongoing Naval Construction Programs," State of the Russian Navy Data Page, http://www.webcom.com/~amraam/build.html#shipyards.
[2] Yevgeniya Borisova, "Shipyards To Unite in 'Fist,'" St. Petersburg Times online edition, http://www.times.spb.ru, 26 January-1 February 1998. {Entered 8/14/98  HA; updated 5/24/2000, GD}
 
BALTIC SHIPYARD DEVELOPMENTS:
 
4/18/2002: BALTIC SHIPYARD TO UPGRADE ITS FACILITIES, BUILD FRIGATES FOR INDIAN NAVY
The Baltic Shipyard plans to overhaul its production line in a move that Baltic Director Oleg Shulyakovskiy says will reduce the time necessary to fulfill contracts by 25 percent. The modernization project is estimated to cost around $340 million and will take until 2006. In the meantime, the shipyard is continuing work on the nuclear icebreaker 50 Let Pobedy, as well as three frigates for the Indian Navy, the Talwar, Trishul, and Tabar. The first of these frigates is due to be delivered to the Indian Navy in May. It has already completed a series of tests of its state-of-the-art weapons systems, including the Club-N anti-ship missile complex, the Puma-Universal artillery system, and the Kashtan anti-aircraft system. According to Shulyakovskiy, the ship will be fitted with foreign equipment; for instance, navigation and communication systems were supplied by India.
[Lyuba Pronina, "Baltiisky Zavod Harbors Grand Plans for Upgrade," Moscow Times, 18 April 2002; in Lexis.Nexis Document 200204187718.m18.] {Entered on 6/18/2002 TM}
 
1/19/2002: BALTIC SHIPYARD TO BUILD TWO DESTROYERS FOR CHINA
On 19 January 2002, a state commission headed by Russian Shipbuilding Agency Director Vladimir Pospelov chose the Baltic Shipyard over St. Petersburg's Severnaya Verf and Kaliningrad's Yantar Shipyard to build two destroyers for China.[1] Rosoboroneksport, the state arms export agency, signed a $1.4 billion contract for the manufacture of two Project 956EM destroyers on 3 January 2002. Although the Shipbuilding Agency had originally decided to give the contract to Severnaya Verf, the Baltic Shipyard and Polimetall (an industrial group that owns a controlling share of the BalticShipyard), had sufficient political influence to get the agency to reconsider its decision [2]
Sources:
[1] Interfax, 19 January 2002; in "Russia to Build Two Destroyers for China," FBIS Document CEP20020119000034.
[2] Aleksandr Klenov, "Objective: Two Destroyers," Profil, 14 January 2002; in "Klebanov Opens up Severnaya Verf Contract to Build Destroyers for China to Bidding by Competing Shipyards," FBIS Document  CEP20020114000323. {Entered 1/22/2002 EF}
 
12/5/2001: RUSSIAN GOVERNMENT INCREASES FINANCING OF 50 LET POBEDY
On 5 December 2001, Baltic Shipyard general director Oleg Shulyakovskiy announced that the Russian government plans to allocate 400 million rubles (over $13.3 million as of 5 December 2001) in 2002 for construction of the Arktika-class nuclear icebreaker 50 Let Pobedy. In 2001, the shipyard received 200 million rubles (over $6.6 million as of 5 December 2001) from the government for the icebreaker's construction. 50 Let Pobedy is 70% complete and about 2 billion rubles (over $66.7 million as of 5 December 2001) are needed to finish the icebreaker.
["'Baltiyskiy zavod' zhdet ot pravitelstva RF 400 mln. rub. na dostroyku atomnogo ledokola," Interfax, 5 December 2001.] {Entered 1/23/2002 EF}
 
8/25-27/2001: NUCLEAR REACTORS INSTALLED ON 50 LET POBEDY
Between 25 and 27 July 2001, the Baltic Shipyard installed two nuclear reactors on the 50 Let Pobedy icebreaker. Nuclear fuel will be loaded after the installation of a radiation protection system and pipelines is complete.[1,2] In 2001, the shipyard received 150 million rubles (about $5.1 million as of 27 July 2001) for the icebreaker's construction. Another 2.2 billion rubles (almost $75 million as of 27 July 2001) is needed to finish it.[2]
Sources:
[1] Vyacheslav Kalashnikov, "Na bort stroyashchegosya atomnogo ledokola '50 Let Pobedy' pogruzhen pervyy reaktor," RIA Novosti, 25 July 2001; in Integrum Techno, http://www.integrum.ru.
[2] Vyacheslav Kalashnikov, "Na stroyashchemsya v Peterburge atomnom ledokole '50 Let Pobedy' ustanovlen korpus vtorogo reaktora," RIA Novosti, 27 July 2001; in Integrum Techno, http://www.integrum.ru. {Entered 9/4/2001 EF}
 
11/24/2000 BALTIC SHIPYARD LAUNCHES SECOND WARSHIP FOR INDIA
On 24 November 2000, the Baltic shipyard launched the Trishul, a frigate built for the Indian Navy. This warship, based on the Krivak frigate, is equipped with a Ka-31 Helix helicopter landing pad, the Shtil/Uragan surface-to-air missile system, a 100mm dual-purpose gun, two Kashtan close-in weapons systems, and torpedoes. The vessel's top speed is 30 knots.[1,2] This is the second of three warships to be built under a contract signed in 1997 between Rosvooruzheniye and the Indian Defense Ministry. The first frigate, the Talwar (also referred to as the Mech in some sources), was launched in May 2000. It is now undergoing tests. Delivery to India is scheduled for April 2002. The last ship, the Toofan (also referred to as the Palash in some sources), was under construction as of November 2000 and is scheduled to be delivered in June 2003.[2,3] The estimated value of the contract is approximately $1 billion.[1]
Sources
[1] "Na Baltiyskom zavode proydet tseremoniya spuska na vodu fregata dlya voyenno-morskikh sil Indii," ITAR-TASS, 24 November 2000; in Integrum Techno, http://www.integrum.ru.
[2] "Russia sells warships to India and China," Middle East Newsline, Vol. 2, No. 462, 29 November 2000.
[3] Vladimir Shvarev, "Frigate for Indian Navy Built in Russia," ITAR-TASS, 24 November 2000; in FBIS Document CEP20001128000010. {Entered 2/19/2001 EF}
 
10/13/2000 BALTIC SHIPYARD MAY BUILD SHIPS FOR NORWAY
On 13 October 2000, Baltic Shipyard signed a protocol with the Norwegian company Chili Navigation Ltd. on manufacturing a line of ships that would be used to service offshore oil drilling platforms. The contract for the first ship may be signed in the end of October. The manufacture of eight ships, at a total cost of $160 million, is under discussion.[1] The Norwegians will provide the basic design and the shipyard will prepare the documentation for the ships' manufacture.[2]
Sources:
[1] "'Baltiyskiy zavod' postroit za $160 mln dlya norvezhskoy kompanii Chili Navigation LTD seriyu sudov obsluzhivaniya neftedobyvayushchikh platform," Agenstvo voyennykh novostey, 13 October 2000; in Integrum Techno, http://www.integrum.ru.
[2] "Delovoy Peterburg," Vsya Rossiya, 13 October 2000; in Integrum Techno, http://www.integrum.ru. {Entered 2/20/2001 EF}
 
10/13/2000 BALTIC SHIPYARD CHANGES OWNERSHIP AGAIN
On 13 October 2000, the joint stock company IST (Investitsii-Stroitelstvo-Tekhnologii, or Investments-Construction-Technologies) purchased 35% of Baltic Shipyard's shares. Together with the 15% that the company already owned, the purchase resulted in the ownership of 50% plus one share and put IST in control of the shipyard.[1] At a June 2000 shareholder meeting, two IST representatives were allowed to join the shipyard's board of directors. From 1993 through 1997, IST owned a controlling share of the shipyard and IST founder Aleksandr Nesis was the head of the board of directors. Originally, IST acquired the shipyard shares through the voucher privatization process at very low prices; when it sold them in October 1997, it made more than $20 million. IST sold the shares because ONEKSIM Bank and Inkombank had mounted struggles for control of the shipyard, and the shipyard required major investments.[2] In 1998, Baltic Shipyard Director Oleg Shulyakovskiy used funds from a contract to construct frigates for India to buy 50% of the shipyard shares from ONEKSIM Bank; he later distributed those shares among three companies closely tied to the shipyard's management. Law enforcement organizations have initiated an investigation regarding this transaction.[3] Igor Makurin, IST's deputy director of public relations, said that IST plans to invest $40 million in modernization of the shipyard.[4] The shipyard's other significant shareholders include Mezhregionalnyy Investitsionnyy Bank (around 17%), Inkombank (around 9%), and OOO Balt-Finans (10.2%). The Russian state owns a "golden share," which means that it has special rights, such as the power to veto certain management decisions, regardless of the number of shares it owns.[5]
Sources:
[1] "Krupneysheye v Peterburge sudostroitelnoye predpriyatiye - 'Baltiyskiy zavod' perekhodit pod kontrol ZAO 'IST'," Agenstvo voyennykh novostey, 13 October 2000; in Integrum Techno, http://www.integrum.ru.
[2] Yelena Trekhovitskaya, "Gruppa 'IST' vozvrashchayetsya na 'Baltiyskiy',"Delovoy Peterburg, 6 September 2000; in Integrum Techno, http://www.integrum.ru.
[3] Yelena Trekhovitskaya, "Kontrolery idut protorennym putem," Delovoy Peterburg, 18 October 2000; in Integrum Techno, http://www.integrum.ru
[4] Tatyana Gruzdeva, "Baltiyskiy zavod opyat uplyl k ISTu," Delovaya panorama online edition, No. 40, 16-22 October 2000, http://www.info-rus.com/dp/current/1/4.html
[5] Yelena Loktionova, "'IST' poluchit Baltiyskiy zavod,"Delovaya panorama, No. 35, 11-17 September 2000; in Integrum Techno,  http://www.integrum.ru. {Entered 2/16/2001 EF}
 
6/3/2000 UNDERGROUND NPPS PROPOSED FOR KALININGRAD OBLAST, THE KOLA PENINSULA, AND PRIMORSKIY KRAY
The subterranean thermal nuclear electric power plants proposed for Kaliningrad Oblast, the Kola Peninsula, and Primorskiy Kray are to be manufactured by the Baltic Shipyard in cooperation with other St. Petersburg enterprises.  See the 6/3/2000 entry in the Nuclear Power Developments section for more information.
{Entered 07/13/00 NEB}
 
3/2/2000:  50 LET POBEDY  TO RECEIVE $10.5 MILLION THROUGH 2003
On 2 March 2000 Bellona reported that the Russian government would earmark $3.5 million annually for the next three years to complete the Arktika-class nuclear icebreaker 50 Let Pobedy (50 Years of Victory). Construction, which began in 1989, was originally scheduled for completion in 1994; however, due to a lack of funding and a reduction of cargo shipments in the Arctic, construction was scaled back.  According to Baltic Shipyard General Director Oleg Shulyakovskiy, $25 million per year is necessary to finish construction by 2003.  (For more information on Russian icebreakers, see the Russian icebreakers overview section of the database. For details about reactor type and power output of the icebreaker fleet, see the table on Russia's icebreaker fleet.)
[Igor Kudrik, "New icebreaker might enter service in three years," Bellona Foundation Web Site, http://www.bellona.no, 2 March 2000.] {Entered 5/23/2000, GD}
 
1/29/98: TWO ST. PETERSBURG SHIPYARDS TO MERGE
Oneksimbank has announced plans to combine two of St. Petersburg's three major shipyards, the Baltic Shipyard and Severnaya Verf, into one company, the Unified Baltic Shipyard.  Oneksimbank has called on the general director of the Baltic Shipyard, Oleg Shulyakovskiy, to head the new enterprise.  According to Shulyakovskiy and Viktor Volostnykh, head of Severnaya Verf's department of strategic planning, the new enterprise will combine the powerful machine-building equipment at the Baltic Shipyard with the superior building slips at Severnaya Verf for more efficient production.  Shulyakovskiy also noted that the two shipyards already share technical policies, supply orders, financial management, and marketing.  The Russian Ministry of Defense owes both shipyards together a total of nearly 126 million rubles ($21 million), and Baltic Shipyard alone owes workers six weeks of back pay.  Both of the shipyards rely heavily on foreign orders for their income and have more than enough orders to fill.  Foreign clients include India, China, and Hungary.  Click here for more information on Russian nuclear and missile exports to India.
[Yevgeniya Borisova, "Shipyards To Unite in 'Fist,'" St. Petersburg Times online edition, http://www.times.spb.ru, 26 January-1 February 1998.] {Entered 8/14/98  HA}

 
Page last updated 18 June 2002

Comments or questions? Contact Cristina Chuen at MIIS CNS: cristina.chuen@miis.edu

CNSThis material is produced independently for NTI by the Center for Nonproliferation Studies at the Monterey Institute of International Studies and does not necessarily reflect the opinions of and has not been independently verified by NTI or its directors, officers, employees, agents. Copyright © 2003 by MIIS.

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