Russian ship sales expected to rise 20% in 2009

Russia's shipbuilding industry will see a 20% rise in sales this year to 180 billion rubles ($5 billion) compared with 150 billion rubles in 2008, the industry and energy minister said on Wednesday. Viktor Khristenko said warships and related military products would account for around 70% of total sales. He also said the sector should continue carving out market niches for its products, although this was an uphill task, given that the Russian shipbuilding industry was less competitive than its main rivals.
He said this referred, in particular to productivity levels, which are lower 80% than the world average, while wages are higher.
"On standard products, we're not in a position to compete with the Koreans or the Japanese or the Chinese," he said.
The minister said Russia could effectively compete in "high-tech niches," specifically ice-breaking tankers.
He said the creation of the United Shipbuilding Corporation would be completed in April.