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VTB, Rosneft deal over Zvezda shipyard is now dead, VTB CEO says

VTB, Rosneft deal over Zvezda shipyard is now dead, VTB CEO says

Reuters18-03-2025

MOSCOW, March 18 (Reuters) - Russia's second-largest lender VTB's deal to acquire the Zvezda shipbuilding yard from oil company Rosneft is now dead because the VTB-owned United Shipbuilding Corporation (USC) cannot finance the acquisition, VTB CEO Andrei Kostin said on Tuesday.
VTB is currently running USC, Russia's largest shipbuilder, which operates about 40 shipyards, design offices and repair yards across Russia, employing 95,000 staff.
VTB said in December of last year that it was in talks with Rosneft over the Zvezda acquisition, stressing that consolidation of shipbuilding assets in USC was a good thing for the sector.
"The evaluation is no longer ongoing. There is no deal anymore. And there won't be one. Because USC does not have the funds yet, but there is an effective owner there who will continue to operate," Kostin told reporters.
Zvezda is Russia's most advanced shipbuilding yard, focusing on building large Arc7 ice-class tankers, able to cut through 2-metre thick ice to transport liquified natural gas (LNG) from Arctic projects.
Russia is keen to develop its shipbuilding industry since it can no longer acquire advanced vessels and sophisticated maritime equipment from Western makers due to sanctions, imposed over its military action in Ukraine.

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ScotGov pulls plug on lifeline finance of state ferry fiasco firm
ScotGov pulls plug on lifeline finance of state ferry fiasco firm

The Herald Scotland

time4 hours ago

  • The Herald Scotland

ScotGov pulls plug on lifeline finance of state ferry fiasco firm

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It previously awarded two other ferry contracts worth to £220m to Cemre Marin Endustri A.S (Turkey) - with Ferguson Marine again losing out. The board of the loss-making Scottish Government-owned ferry fiasco shipyard firm has admitted that questions over further financial support from ministers was casting a "significant doubt" on its ability to continue operations and that the contact for the seven ferries was seen as crucial. Meanwhile the Scottish Government said there was an "intention" to give a direct award of a £3.7bn contract to run the Clyde and Hebrides lifeline ferry service from October 1 after a due diligence exercise concluded that there was no legal issue in terms of state aid rules that would prevent that. Ms Hyslop was asked what assessment was undertaken that resulted in it determining that state-owned ferry operator CalMac should be directly awarded the Clyde & Hebrides Ferry Services (CHFS) contract without an open tender process while stating that doing the same for Ferguson Marine with the small ferries contract was presenting a legal risk. She replied that there was "no financial, operational or legal impediment" to implementing a direct award to CalMac. And she added: "Shipbuilding is a competitive global market and a designated sensitive sector under the UK Subsidy Control Act. "For SVRP [the Small Vessel Replacement Programme] it was assessed that a substantial subsidy would have been required to support direct award of the Phase 1 contract to Fergusons, which we did not consider would be capable of being justified. 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ScotGov raises 'doubt' on CalMac getting new ferry contract from October 'People going bananas': New ferry fiasco hits vital island supplies 'Mismanagement': Public cost of Scots ferry fiasco firm hits £750m amidst overspends The completion of due diligence to confirm vital investment funds worth £14.2m for the yard has already has been held up for nearly a year, even though the money has technically been pencilled in to be awarded over two years. The Port Glasgow yard, which was featured in a Standing up for Scotland SNP video fronted by former First Minister Nicola Sturgeon, is also not certain to get the money it needs to complete a lifeline island vessel at the centre of a "new farce" over soaring delays and costs. The £35m extra public costs for Glen Rosa being asked for by Ferguson Marine is to become subject to further 'due diligence' probing by ministers before a decision is made on whether the extra money will be provided. Glen Rosa was expected to be taking passengers in September - but now state-owned Ferguson Marine has admitted the full sign off and deliver will not be till the summer of next year - between April and July. The Scottish Government had already carried out a 'due diligence' exercise over the provision of a direct uncontested contract to Ferguson Marine to build the ferries but minister previously said it was rejected as it was felt it would be subject to a state aid legal challenge. Ferguson Marine's business plan which assumed that there would be a direct award was approved and submitted in June, last year before being verbally accepted by ministers the following month, when Ms Forbes publicly stated an intention to invest £14.2m to upgrade the yard. The plan was based on the yard remaining under public ownership for at least the next five years. Concerns over the funding of the yard come after the Herald revealed that the public cost of Ferguson Marine had hit up to £750m. A £69m overspend in 2023/24 alone - with costs totalling £131m was said to be in the main due to huge slump in the value of the two fiasco ferries. Financial statements up to 2025/26 had revealed that budgets set by the Scottish Government for Ferguson Marine were overspent to the tune of £210m in the first five years since it was nationalised at the end of 2019 as it attempted to deliver two long-delayed and wildly over-budget lifeline ferries. The costs so far of the beleaguered Inverclyde shipyard firm - which includes sums to cover running costs, wages and a dramatic slump in the value of the stricken vessels - soared to just nearly £710m before the board last month sought £35m more public money from the Scottish Government because of further rises in costs to deliver Glen Rosa, the second of the two ferries. The Ferguson Marine bill is enough to cover the cost of 13 ferries of the type currently being built for Scotland at the Cemre Marin Endustri shipyard in Turkey. Kate Forbes at Ferguson Marine (Image: Andrew Milligan) Ms Forbes has consistently told MSPs that the £14.2m support package over two years to help secure Ferguson Marine's future was in place and in March told MSPs that "hundreds of jobs have been protected only because of the actions of the Government". In March she told MSPs that there needed to be support for Ferguson Marine to be as competitive as possible so that it is able to secure work through a fair and open procurement process and that "that is the reason for the £14.2m investment" She further told them: "The bottom line is that we have agreed to invest £14.2 million in equipment for the yard so that it can compete on a global basis." But officials had consistently confirmed to the Herald that the two-year investment remains subject to the kind of due diligence tests that stopped the yard from directly getting the small vessels ferry contract. That due diligence investigation, which involves passing detailed legal analysis and independent financial and commercial assessments, was supposed to be complete by the Autumn of last year. The board of the loss-making Scottish Government-owned firm has admitted that questions over further financial support from ministers is casting a "significant doubt" on its ability to continue operations as losses incurred by Ferguson Marine have totalled over £2.7m in the last two full years. Ferguson Marine has a 'letter of comfort' which says that "it is our present policy, including with active consideration of the business plan budget and future work of the group, subject to the approval of the Scottish Parliament and in so far as permitted by applicable laws and withing agreed budgets for at least a period of 12 continue to provide support to the group". 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Evri tie-up with DHL's UK parcel arm being probed by competition watchdog
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North Wales Chronicle

timea day ago

  • North Wales Chronicle

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Evri tie-up with DHL's UK parcel arm being probed by competition watchdog
Evri tie-up with DHL's UK parcel arm being probed by competition watchdog

The Herald Scotland

timea day ago

  • The Herald Scotland

Evri tie-up with DHL's UK parcel arm being probed by competition watchdog

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