News – The Russian Government

Agenda: Results of the trip to the North Caucasus Federal District, Strategy for the Development of the Shipbuilding Industry until 2036 and in the longer term until 2050, establishment of the Phystech Valley science and technology innovation centre.

Mikhail
Mishustin’s opening remarks

Denis
Manturov’s report on implementing the Shipbuilding Industry Development
Strategy until 2036 and in the longer term until 2050

Dmitry
Chernyshenko’s report on establishing the Phystech Valley science and technology
innovation centre

Excerpts from the transcript:

Mikhail Mishustin: Good afternoon, colleagues.

Last week, we made a working visit to the North Caucasus Federal
District. In North Ossetia-Alania, we saw how the President’s instructions on the social and economic development of the city of Beslan were being
implemented. 

Substantial federal funding has been allocated for this. A total of 49
measures are envisaged, of which 45 have already been carried out. These
include the construction of a music school and renovation of the House of Children’s Creativity. We visited these important facilities, which have
created very good conditions for children to develop their creative and musical
skills in a comfortable environment. 

The main thing is that the city itself is being transformed, and this
work will continue. The reconstruction of the outpatient clinic and the repair
of bank protection structures on the Terek River will be completed. This is
important for improving the quality of people’s lives.

Mr Novak, please keep all these issues under personal control.

In Ossetia, we visited an enterprise engaged in apple growing with state
support. 

Mr Patrushev, we need
more positive examples like this. It is essential to collaborate more actively
with domestic agricultural producers so that they receive everything they need,
and, possibly, we should discuss such results more often. The Government will
continue to assist farmers in strengthening Russia’s food security and providing people with high-quality products. We need to achieve this objective,
set by the President, and to expand the production volumes of the agro-industrial
sector.

I also believe that
we should hold several meetings on food security this coming summer. This
includes visits to Far Eastern and Siberian regions. We will consult you which regions in particular.

We inspected a new
domestic airline terminal in Mineralniye Vody, the Stavropol Territory. The new
facility will improve passenger service standards for local residents and visitors, offering more comfortable travel. As you know, more and more tourists
are travelling to the North Caucasus.

We held a separate
meeting on modernising the airport infrastructure, during which we discussed
the implementation of the President’s instruction across the nation in detail. The measures of the Effective Transport System national project aim to achieve this
goal. I would like to remind you that we will modernise at least 75 airfields
over the next six years. For this purpose, it is necessary to attract federal
funding and private investment.

Today, well-equipped modern
airports are essential for dynamic economic development of the regions and for expanding the connectivity of our vast territory. They also make flying more
comfortable for Russian and foreign citizens throughout Russia.

Mr Savelyev, airport
construction and modernisation plans should be fulfilled on time. I know that
you are monitoring this process, and I ask you to keep a close eye on this
issue.

Another matter
concerns our plans to modernise and expand the national fleet as soon as possible. Against the backdrop of foreign sanctions and restrictions, this
objective is of key significance for establishing logistics routes between Russia
and friendly countries, for freight traffic via the Northern Sea Route, for inland navigation and for expanding river tourism.

Since 2025, we have
considerably expanded support for those manufacturing and purchasing ships and related components. In the next six years, we will spend over 500 billion
roubles in federal funding for these purposes which is a record figure for the industry. A considerable share of this funding is stipulated under the new
technological leadership national project Industrial Support for Transport
Mobility.

In light of various
challenges, the Government has updated its strategy for the development of the shipbuilding industry. The document has been drafted and approved and should be
implemented until 2050.

We have charted
specific priorities for expanding production capacities, building new shipyards
and increasing the workload of enterprises. It is necessary to expand research
and development programmes, make this sector more attractive for investors and eliminate excessive administrative barriers.

It is important to accomplish the objective set by the President to achieve technological
sovereignty, including in critical ship equipment categories and the most
significant production processes.

Mr Manturov, please
tell us in more detail about the updated goals and priorities in this sphere.

Denis Manturov: Mr
Mishustin, colleagues.

When updating the shipbuilding
development strategy, we first identified the long-term demand for fleet capacity
through 2050. This was based on forecasts for increased cargo and passenger transportation, as well as the growing extraction of aquatic biological resources.

In addition, we took into account the gradual decommissioning of existing
vessels, most of which were built in the 1970s and 1980s. The systematic replacement of these
with modern, technologically advanced ships is one of the main challenges facing our domestic
shipbuilding industry.

Under the baseline scenario of the strategy, over
1,600 civilian vessels and marine hardware are expected to be built at Russian shipyards by 2036. Priority will be given to vessels for the Northern Sea
Route and the North-South transport corridor. Particular focus is being placed on developing capabilities for large-capacity projects, including crude
oil tankers, gas carriers, shuttle tankers and bulk carriers.

We are paying special attention to the construction of icebreakers,
support vessels and maintenance ships, as well as to the accelerated renewal of the passenger and fishing
fleets.

In most key areas, we have established a solid foundation that will allow us to ramp up production. However, to achieve this, it is critically important to overcome structural barriers within the industry, which is precisely the aim of this strategy. In particular, it includes large-scale modernisation and efforts to eliminate the shortage of shipbuilding
capacity, including through the establishment of new
shipyards. At the same time, we must significantly increase the share of serial production of civilian
vessels to make them more cost-competitive.

Another cross-cutting industrial task – one that our enterprises are already addressing – is the replacement of foreign shipboard equipment with domestic
alternatives. In terms of fleet operation, the strategy
also calls for the development of ship repair centres with well-organised supply logistics for spare
parts and components.

In other areas, I would mention the plans to strengthen the industry’s human resources potential. To meet
future demands, we will need to increase the workforce by at least 15
percent by 2036, to around 190,000 people. In addition to staffing the shipyards, it
is equally important to attract talent to design and development
centres. We must also make greater use
of applied scientific research, push forward with automation and digitalisation at the shipyards to boost labour productivity and gradually transition to large-block
shipbuilding. 

Naturally, fulfilling the state defence order remains a top priority for Russian shipbuilders. The main document here is the strategy for the development of the Navy, which is
currently being finalised for the period until
2050. It is essential
that the civilian and military tasks of our shipyards are well coordinated.

In the same vein, the shipbuilding strategy has been aligned with
other programme documents and with the objectives of the national project on transport mobility.

As regards financial support for the industry, the state will continue to play the dominant role in the development of the industry over the next
two decades. At the same time, as competencies grow and product competitiveness improves, state involvement
should gradually decline. Ultimately, the strategy should lead to a market-driven development model for segments of the industry not directly related to the state defence
order. The shipbuilding sector is ready to take on this
long-term challenge, and is already putting many of these approaches into
practice.

Mikhail Mishustin: Thank
you, Mr Manturov.

It is
important to localise the production of ships, vessels and marine equipment as much as possible and achieve high rates in creating competitive products.

To this end, it is necessary to compile a detailed list of all measures required
to ensure an efficient organisation of production, both technologically and in terms of operational processes. Particular attention must be paid to staffing
and human resource planning.

Another
topic is the implementation of measures aimed at achieving Russia’s
technological leadership in key industries and creating critically important
innovations.

For this purpose, we continue to strengthen our scientific infrastructure and concentrate the educational system’s efforts, while implementing such flagship
projects as the Professionalitet, Advanced Engineering Schools, Priority 2030,
and World-Class Research Centres. We are also establishing a network of megascience installations to ensure a modern infrastructure and develop a more
skilled workforce capable of carrying out complicated and large-scale
assignments set by the President.

In this regard, the Government has made the decision to establish the Phystekh
Valley science and technology innovation centre. It has also approved its
operational rules and main areas of activity. These platforms are an important
tool for supporting technological companies, as they help to commercialise and implement research results and R&D.

Mr
Chernyshenko, please tell us more about this project and generally about the key focal points in training engineers for the economy. 

Dmitry Chernyshenko at a meeting on current issues with deputy prime ministers

Dmitry Chernyshenko: Mr Mishustin,

As you have rightly noted, innovative scientific and technological centres
(ISTCs) serve as a vital mechanism for fostering collaboration between science,
education, and businesses.

Currently, there are 12 such centres across Russia – from the Kaliningrad Region to the Primorye Territory. The most recent, the Nevskaya
Delta ISTC in St Petersburg, was officially established in 2024.

As you mentioned, the 13th centre, Phystech Valley, will be developed at the Moscow Institute of Physics and Technology. Its focus will be on cutting-edge fields such as quantum technologies, photonics, microelectronics,
artificial intelligence, biomedical technologies, and robotics – areas that are
highly relevant not only for Russia, but also for the global scientific and technological landscape.

This year, the Moscow Institute of Physics and Technology secured first
place among universities participating in the Priority-2030 programme and was
awarded a grant of 1 billion roubles. Since 2022, it has hosted an advanced
engineering school specialising in radar and radio navigation. MIPT is also
recognised as a leader in the commercialisation of research and development,
with R&D revenues exceeding 6.5 billion roubles just since last year.

The establishment of the new scientific and technological centre will
undoubtedly further strengthen MIPT’s research capabilities. Its resident
companies will benefit from a range of incentives, including tax and customs
advantages such as zero VAT, and exemptions from property and land taxes.

Mr Mishustin,

As you emphasise, we take a systematic approach to the training of highly qualified engineering personnel.

First, under the national project Youth and Children, we are continuing
to expand the network of advanced engineering schools. To date, 50 such schools
have been established, and, as the President instructed, this number is set to double to 100 by 2030.

This year alone, approximately 2,000 graduates from these programmes
will begin careers in Russian high-tech companies.

Second, we are in the process of creating an integrated, continuous
education system that links schools, colleges, and universities. This model
will help ensure a steady influx of young professionals with secondary
vocational education into the workforce.

Third, we will continue with the planned increase in quotas for the training of in-demand engineering specialists.

Fourth, at least half of all state-funded university places will now be
allocated through targeted government contracts aimed at training professionals
for priority sectors.

Fifth, we will establish a legal framework for the regulation of tuition-based
university admissions.

Sixth, starting from the next academic year, preferential student loans
at a 3 percent interest rate will be offered exclusively for programmes aligned
with economic priorities, including engineering disciplines.

In conclusion, I would like to note that preparations for the upcoming
admissions campaign are well underway.

The process is proceeding smoothly, and we are closely following all of your
instructions.

Mikhail Mishustin: Thank you, Mr Chernyshenko. We
anticipate that Phystech Valley will play a vital role in advancing Russia’s
scientific and technological development priorities. MIPT has long been at the forefront of the nation’s most important initiatives, from space exploration to nuclear programmes and beyond. It possesses a strong foundation for undertaking
such ambitious tasks, along with extensive experience and a distinguished
legacy.