Putin orders govt to create state shipbuilding company

Moscow, Mar 13 (UNI) Russian President Vladimir Putin has ordered the government and the Industry and Energy Ministry to prepare urgently a decree to set up a state-controlled shipbuilding company.

Shipbuilding is one of the three industries that the Russian government wants to develop as part of its drive to diversify the economy away from oil and gas exports. The other two sectors are the aircraft-building and space industries.

The decree should be completed within a week, Mr Putin said at a Cabinet meeting adding that the Russian First Deputy Prime Minister, Sergei Ivanov would supervise the creation of the company.

''It is directly under your remit of responsibilities,'' Mr Putin told Mr Ivanov, Interfax reported.

The federal budget will set aside 3.5 billion dollars on boosting civil ship-building from 2008 to 2015, while Russian companies will need 22.8 billion dollars worth of new ships and oil rigs over this time frame, the Industry and Energy Ministry said.

Construction of service ships and oil and gas rigs for offshore projects will account for two-thirds of the companies' anticipated spending, it added.

Most of the orders are expected to come from Gazprom, Rosneft and LUKoil, Industry and Energy Minister Viktor Khristenko said.

UNI