PESTEL Analysis

PESTEL-analysis for shipbuilding industry at the Russian Far East
Group of factors
Representation
Conclusion (O/T)
Political factors
Governmental policy

Tax policy

Russian – Chinese and Russian-South Korean relationships

Level governmental subsidies

World Oil & Gas market
Concentration of governmental efforts for construction and development of infrastructure of Russian fleet.
Maintenance of good technical condition of Russian fleet for successful completing of its goals and tasks. (direct and indirect investments)
Export diversification strategy expressed in growth of offshore gas & oil fields development.

Creating of free-trade zones near new shipyards for cost cutting in ships construction (order of foreign material and equipment)
Infrastructure development funded with tax liabilities in regional budgets + multiplicative effect funded with small and medium business development, which provides the growth needs of shipbuilding production.
Capability of training programs at the best South-Korean shipyards.
Cooperation with Korean and Chinese shipbuilding companies in shipbuilding and offshore construction
Sovereign credit extension

Growing need to tankers and LNGCs fleet renovation

Opportunity

Opportunity

Opportunity

Opportunity

Opportunity
Economical factors
Credit availability

Logistic

Labor intensity level

Economic stability

Exchange and inflation rate

Price fluctuation

Credit terms
Credit extension from the biggest Russian banks, such as Alfa Bank, Gazprombank, Vnesheconom bank.

Availability of railway and sea transport routes

Construction of new shipyards allows to reduce the labour intensity and increase the productivity level

Existing of corruption in industry sector

Potential risk of high inflation rate and non-stability exchange rate
High volatility of commodity and financial markets

Dependence of shipbuilding contracts from steel price fluctuation

High debt costs and