You're reading: Russian-Ukrainian shipbuilding venture hits snag

The talks on the formation of a Russian-Ukrainian shipbuilding joint venture have encountered difficulties related to the operation capacity of the shipyards, Ukrainian Prime Minister Mykola Azarov has said.

"We are currently holding the talks on setting up a joint venture in shipbuilding. They started very vigorously, Vladimir Putin ordered to settle this issue and they found out that Russian shipyard are working to one third of their capacity. That is why the situation is difficult as it is," Azarov said while speaking at a meeting on current issues of the development of Kherson region on Tuesday.

Talking at a similar meeting in Mykolaiv earlier that day, Azarov said that the issues of shipbuilding cooperation are not on the agenda of the upcoming meeting of the Russian-Ukrainian intergovernmental commission chaired by the two premiers.