Russian shipyard nears collapse amid defense industry crisis

Key Points
  • Workers at Russia’s Yaroslavl Shipbuilding Plant say they have not received wages since late September, citing unpaid orders from the Ministry of Defense.
  • Ekonomichna Pravda reports that many production shops are idle and employees have been placed on forced downtime.

Yaroslavl Shipbuilding Plant employees say they have not received salaries for nearly two months, citing unpaid military orders and stalled production, according to Ukrainian outlet Ekonomichna Pravda.

The Yaroslavl Shipbuilding Plant, a Russian company under international sanctions for its cooperation with the country’s defense-industrial sector, has reportedly failed to pay its workers for nearly two months.

According to Ekonomichna Pravda, employees say the last payments were made in late September, and the plant has since placed much of its workforce on forced downtime.

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“They promised to pay everything they owed on October 23, but again nothing,” one employee told. “At the meetings they say that the Ministry of Defense is not transferring money for the order.”

Public data shows the shipyard employs approximately 850 people and produces both civilian and military vessels, including landing ships, patrol boats, and other types of naval platforms. As noted by Ekonomichna Pravda, the plant plays a dual role in Russia’s shipbuilding sector, with output supporting both commercial and state clients.

The employee quoted by the outlet added that many workshops are currently shut down due to the wage dispute. Workers have been told that the lack of salary payments is due to “the employer’s fault,” and production has come to a near halt. In the meantime, some workers are considering leaving the plant altogether. “The prospects are vague,” one employee said.

Moreover, the newest Russian Navy tugboat of Project 23470, Kapitan Ushakov, recently sank at a pier in St. Petersburg. Baltic Shipyard confirmed that “work on the tug was carried out by representatives of the Yaroslavl Shipbuilding Plant, which had rented the pier.”

That incident drew attention due to the involvement of the Yaroslavl workers, especially amid ongoing operational difficulties and reports of mismanagement. The tugboat was being finalized at the time of the incident and that crews from Yaroslavl were present on-site.

Multiple employees said they have attended internal meetings where managers acknowledged the delays but gave no clear timeline for resuming payments. They claim the plant’s leadership continues to attribute the delay to a lack of incoming funds from Russia’s Ministry of Defense.

The plant, once a steady source of employment for the region, now faces growing uncertainty as some employees seek other work. As several employees told the outlet, many have families to support and cannot continue working without income.

The combination of halted production, unpaid wages, and involvement in high-profile military projects underlines broader issues within Russia’s sanctioned defense industry. While the plant has a history of building naval assets, its current workforce is unable to fulfill orders without pay or operational stability.

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