Russia to Invest $6B in Domestic Shipbuilding

The Russian government will allocate 500 billion rubles (approximately $6 billion) over the next six years to support the domestic shipbuilding industry, Prime Minister Mikhail Mishustin announced Monday, calling it the largest funding package ever for the sector.

The funds will be directed toward manufacturers and customers of ships and ship components, with the goal of strengthening Russia's logistics capabilities, supporting inland and Arctic navigation, and boosting river tourism, Mishustin said during a meeting with deputy prime ministers.

"In the context of external sanctions and restrictions, the renewal and expansion of the domestic fleet is of key importance for building logistics routes to friendly countries, transporting goods along the Northern Sea Route, for shipping along inland waterways and developing river tourism," he said.

The program will fall under the new national project titled Industrial Support for Transport Mobility, part of Russia’s broader strategy to maintain economic resilience under Western sanctions and redirect trade links toward non-Western countries.

Russia’s announcement comes a month after U.S. President Donald Trump signed an executive order to revive the American shipbuilding industry. The White House’s Maritime Action Plan (MAP) aims to restore the country’s declining ship production capacity in response to China's growing control over global shipping.

The executive order includes a wide set of measures: new investment incentives, a Maritime Security Trust Fund, mariner training expansion, and enforcement of port fees. The Department of Defense has been instructed to evaluate use of the Defense Production Act to scale up the maritime industrial base.

China currently builds about 74% of the world’s ships, while the U.S. accounts for just 0.2%, according to the White House. The disparity has raised alarm in Washington over national security and economic dependence on Chinese maritime systems.

“We don't build ships in America anymore. In 2022, we built five ships. China built 1,800,” said Secretary Sean Duffy. “If you want to be a global power, you have to build ships.”

The MAP also includes plans to penalize foreign shipping dominance. U.S. Trade Representative offices are evaluating tariffs on vessels associated with Chinese construction, while the Department of Homeland Security will tighten oversight of cargo fee evasion.

China’s shipbuilding dominance extends beyond vessels. It also manufactures 96% of the world’s shipping containers and 80% of ship-to-shore cranes used in U.S. ports. Most port operating systems also rely on Chinese software.

The U.S. initiative seeks to counter this by investing in domestic alternatives, building more U.S.-flagged vessels, and expanding port infrastructure. Special “Maritime Prosperity Zones” will also be created, modeled after Trump’s earlier Opportunity Zones to attract private investment.

As global competition over maritime capacity intensifies, both Russia and the U.S. are taking steps to secure their shipbuilding sectors, signaling a renewed focus on national industrial capabilities in an era of geopolitical uncertainty.