Historic Sevastopol Marine plant, once owned by Poroshenko, now an active part of Crimean industrialization
February 2, 2018 – Fort Russ News –
– RUeconomics.ru, translated by Tom Winter –
|“The shipyard is oriented toward fulfillment of government contracts and private work”|
The transition of the Sevastopol Marine Plant, named after Ordzhonikidze, into federal ownership is an element of the formation of the economy of the Crimea. It was, incidentally, owned by Poroshenko during the Ukrainian times. Yuri Pochta, Professor at the Peoples Friendship University of Russia spoke about this to Economics Today ….
“The entry of Crimea and Sevastopol into the Russian Federation was not only a great event and the return of the peninsula to its native harbor. This event also became a serious challenge for the economic and political system of our country. After all, Crimea was part of another country for a couple of decades, and there were many factors that did not correspond to the realities of the Russian Federation.
“There was a very serious task – integration at all levels. Economically, this was also not easy – it was necessary to understand which direction the region should go. It could very well have become a purely tourist cluster, and only related industries would have to be developed. But the option of a full-fledged economic entity was chosen. And the transition of large enterprises into federal ownership is part of the formation of a fully-fledged economy of the Crimea,” the analyst notes.
The Sevastopol Marine Plant named after Ordzhonikidze was transferred to federal ownership – the corresponding order was published on the website of the Russian government. In 2014, the company, officially owned by the current president of Ukraine Petro Poroshenko, was nationalized and transferred to the city balance. The current change in the form of ownership was carried out “in order to organize effective work to increase the weight and development of organizations of the Crimean Federal District.”
“With the Crimea, Russia has received serious capacities for ship repair and shipbuilding, which is important not only because Russia modernizes and strengthens the Navy, but also actively expands the merchant fleet, seeking to take a worthy place in the maritime industry.” Therefore, the transfer of strategic enterprises into direct subordination to the federal center is a serious step forward.
“Ukraine, of course, will resist, and make claims for lost property. Russia takes a tough stance: the reunification of the Crimea with the Russian Federation is the will of the population of the peninsula, expressed through a referendum. The international community is gradually beginning to recognize this. At the same time, nationalization is a normal legal process, habitual for many countries. If Kiev wants to find out how nationalization was consistent with international rules, they can go right ahead, but such attempts are unlikely to be successful,” the political scientist said.
Economic breakthrough in Crimea
The Sevastopol Marine Plant counts its history from the Sevastopol Admiralty, based on the shores of the Akhtiarskaya Bay by the decree of Catherine II in 1783.
In 1851 the Admiralty was renamed Lazarevskoye. In 1920, the shipyard became known as the “Sevastopol Marine Plant.” In 1936 she was given the name Ordzhonikidze.
In the Ukrainian period of the Crimea, the enterprise changed ownership and name, and only after the reunification of the peninsula with the Russian Federation in 2016 returned to the former name.
Today the plant works and renders services to ensure the country’s defense capability, including co-executing state contracts for the repair of ships — including ships of the Navy, and for the production and repair of civilian marine equipment. Since 2016, the Sevastopol Marine Plant, has also been involved in the construction of the Crimean bridge.
“Under the conditions of Ukraine, Crimea was a semi-abandoned province, from which only resources were pumped out, where they tried to plunder the land, including in nature reserves.” They did not invest in infrastructure, which, by 2014, destroyed all Soviet legacy – from roads to drains. Industry perished.
“The reunification of Crimea and Sevastopol with the Russian Federation was a challenge for Russia, and the country’s leadership is coping with it with dignity. Crimea today is one of the regions where serious money is sent to overcome the “legacy” of Ukraine. Restoration and modernization of plants are strategically important for the Crimeans themselves – they get jobs and an opportunity to earn money. In parallel, the enterprises are replenishing the local budget and drawing the economy of the region to a new, more serious level, “- concludes Yuri Pochta