A Russian shipyard is now unable to continue building ships or repair vessels as they do not have enough money to do so, according to the Ukrainian Intelligence Directorate (GUR). The shipyard in question, Vostochnaya Verf JSC, located in Vladivostok, is also experiencing supply chain interruptions of foreign components due to economic sanctions imposed on them in the west, which leaves these yards highly useless.

The Ukrainian Intelligence Directorate allegedly obtained a Russian Defense Ministry report outlining the hardships Russian shipyards were experiencing. One particular shipyard in Vladivostok could not complete a government order of two tankers and two missile boats worth 35 billion rubles due to hardships brought upon by the sanctions. They also could no longer maintain and repair Russian ships.

Furthermore, the lack of foreign components severely hampered the construction of new vessels. Such components include steering columns, navigation systems, naval warfare systems, charges for naval artillery shells, and radio stations.

“In particular, the AT “Vostočnâ Verfʹ” (Vladivostok/Vostochnaya Verf ) has to fulfill state orders for a total amount of 35 billion rubles. Including the construction and supply of two marine tankers, two small rocket ships, two moving maritime docks, repair and service of ships and boats of various types,” the Ukrainian intelligence agency claimed on Facebook.