On October 25, 1996, construction started on the Borey-class Uriy Dolgoruky, a forth generation strategic nuclear submarine, in Severodvinsk. The submarine received no funding in 1997, thus moving the commissioning schedule from the year 2001 to an uncertain 2002 or 2003. The price tag for the boat is now estimated at more than 2 billion USD.

According to the initial Navy plans, one submarine of this class would be laid down each year beginning in 1997. Funding shortfalls hampered the implementation of these plans.

According to David Pashaev, director of Sevmash shipbuilding yard in Severodvinsk, the scarce financing is also due to the strong lobbing from the supporters of land-based strategic Topol-class rocket launchers. The latter earned some fame last November for a failed launch of a submarine ballistic missile prototype from Nenoksa launch field in Archangel county.