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On March 22 2007 President Vladimir Putin signed the Decree on the Creation of the Joint Shipbuilding Corporation. The corporation will be formed within four months of the date of the decree.

The reorganization of the shipbuilding industry is intended to:

·         develop Russian shipbuilding in general, particularly in light of the successful development of the industry in East Asia;

·         ensure the military effectiveness of the Russian Navy;

·         provide additional capacity for the merchant fleet to allow it to remain competitive in the global market; and

·         encourage the industry to capitalize on a worldwide increase in demand for the transportation of fuel by sea.

The corporation's purpose will be to devise, design, manufacture, supply, service, maintain, modernize, repair and utilize shipbuilding equipment and construct continental shelf development equipment for national and foreign customers. It will also seek to develop and apply new shipbuilding technologies.

The corporation's share capital will comprise Rb25 million and 60% of the shares in OJC Nevskoe Project Design Bureau. All assets of existing shipbuilding companies will be consolidated in the corporation, of which the Russian Federation will be the sole shareholder.

The main subsidiary open joint stock companies to be created - in which the Russian Federation will own 100% of the shares - will be:

·         the Western Shipbuilding Centre in Saint Petersburg, whose share capital will comprise Rb25 million and 100% minus one share of OJC Svetlovskoe Enterprise ERA in Svetliy, Kaliningrad;

·         the Northern Centre of Shipbuilding and Ship Repair in Severodvinsk, Archangel, whose share capital will comprise Rb25 million and 100% minus one share of the Rubin-North Design Bureau in Severodvinsk; and

·         the Far Eastern Centre for Shipbuilding and Ship Repair in Vladivostok, whose share capital will comprise Rb25 million and 100% minus one share of the OJC Bereg Research Institute in Vladivostok.

Several federal unitary enterprises will be reorganized into joint stock companies. The Russian Federation, acting as 100% shareholder, will contribute 100% of its share capital minus one share to the subsidiaries' share capital. The federal unitary enterprises in the shipbuilding industry will become joint stock companies. The share capital of the newly created joint stock companies will form the share capital of the corporation's subsidiaries. The Russian Federation's shares in companies which are not federal unitary enterprises will be contributed in order to increase the share capital of the corporation or its subsidiary joint stock companies.

The government will provide a total of Rb100 million for the creation of the corporation.

All implementing procedures for the creation of the corporation, including share capital contributions for newly created joint stock companies, must be completed by April 1 2009.

Alexander Burutin, the councillor of the presidential administration, will be appointed head of the corporation.