The Russian Flag gets the fleet back
Work on creation of the Russian International Register of the vessels, continued for almost 6 years, has come to the end. The President of the Russian Federation, Vladimir Putin signed the law on December 20 About the amendments and additions into certain Acts in connection with the creation of the Russian International Register of the vessels. Thus, 750 sea vessels with the total deadweight of 17 million tons are to return under the Russian flag.
Payment for a flag – once a year
The law signed today was accepted by the State Duma on November 23, 2005 and approved by the Council of Federation on December 7th of the current year. According to the law, vessels used for the international cargo and passenger transportations are to be registered in the Russian Register. Thus it is possible for ship owners to register not only their own fleet, but also rented fleet. The vessels should confirm its registration in the Russian register annually, paying every year a registration payment and so-called tonnage fee.
The accepted law of the Register provides greater tax privileges: VAT at a zero rate and customs duties exemption. This will allow ranking the Russian flag among the category of flags "convenient" for the navigation and to involve the Russian ship owners in registering its fleet in Russia, instead of in offshore. According to the experts of the Ministry of Transport, acceptance of the law on the Register will allow a considerable increasing of the Russian fleet in future. Thus the financial effect from the additional freight received by the Russian ship owners, can make $2.3 billion
Small percentage
Currently about 200 large-capacity vessels operate under the Russian flag. Their general deadweight exceeds 2.6 million tons. However there are no large specialized vessels in the Russian fleet. The small vessels registered in Russia due to low charter rates do not bring greater incomes. On results of the last year the Russian ship owners collected approximately $300 million due to freight. This sum makes a small percentage from the world market.
Competition on equal terms
The policy of tax and customs existed till now in Russia led to an essential rise in prices for trading cargo transportations for the vessels registered in Russia. It was stated by the Chairman of the Committee on the industrial policy of the Council of Federation of the Russian Federation Valentine Zavadnikov, while making comments on the law signed by the President. "It did not allow owners of such vessels competing on equal terms with the foreign companies in the international market and forced them to register the vessels in other states under "convenient flags", - Senator emphasized. Such a policy caused reduction of the Russian fleet and reduction of incomes of the state from the navigation. "The new federal law creates the special register of vessels viz. the Russian International Register, which provides a number of advantages to a registered vessel", - Valentine Zavadnikov noted.
The law signed today was accepted by the State Duma on November 23, 2005 and approved by the Council of Federation on December 7th of the current year. According to the law, vessels used for the international cargo and passenger transportations are to be registered in the Russian Register. Thus it is possible for ship owners to register not only their own fleet, but also rented fleet. The vessels should confirm its registration in the Russian register annually, paying every year a registration payment and so-called tonnage fee.
The accepted law of the Register provides greater tax privileges: VAT at a zero rate and customs duties exemption. This will allow ranking the Russian flag among the category of flags "convenient" for the navigation and to involve the Russian ship owners in registering its fleet in Russia, instead of in offshore. According to the experts of the Ministry of Transport, acceptance of the law on the Register will allow a considerable increasing of the Russian fleet in future. Thus the financial effect from the additional freight received by the Russian ship owners, can make $2.3 billion
Small percentage
Currently about 200 large-capacity vessels operate under the Russian flag. Their general deadweight exceeds 2.6 million tons. However there are no large specialized vessels in the Russian fleet. The small vessels registered in Russia due to low charter rates do not bring greater incomes. On results of the last year the Russian ship owners collected approximately $300 million due to freight. This sum makes a small percentage from the world market.
Competition on equal terms
The policy of tax and customs existed till now in Russia led to an essential rise in prices for trading cargo transportations for the vessels registered in Russia. It was stated by the Chairman of the Committee on the industrial policy of the Council of Federation of the Russian Federation Valentine Zavadnikov, while making comments on the law signed by the President. "It did not allow owners of such vessels competing on equal terms with the foreign companies in the international market and forced them to register the vessels in other states under "convenient flags", - Senator emphasized. Such a policy caused reduction of the Russian fleet and reduction of incomes of the state from the navigation. "The new federal law creates the special register of vessels viz. the Russian International Register, which provides a number of advantages to a registered vessel", - Valentine Zavadnikov noted.