Russia has outlined plans to invest $700m in the construction of two shipyards.

United Shipbuilding Corporation, with Singapore’s Yantai Raffles Shipyard , will create a new shipyard to build drilling platforms in Chazhma Bay, Russia’s Prime Minister Vladimir Putin said.

A dry dock will also be built at the existing Zvezda factory with South Korea’s Daewoo, Putin said.

Of the estimated investment, the country plans to finance 75% from its own sources.

State development bank Vneshekonombank said it had opened a one-year credit line of up to RUR1bn to help finance initial work to build the shipyard.

The government has also created a $5bn plan for the purchase of civilian ships and related technology in the Far East through 2020.