My mum got this badge at a boot fair in Essex today, and I was wondering what the story behind it is...the boat on the badge looks a lot like a Kilo but that's about all I can figure out...other than the fact that it's Russian of course

I was wondering if anyone (Kap, Xabba) would be able to help me here.
Here's the badge (sorry about the poor quality, it's from the phone camera):
And here's a rough copy of the cyrillic on the badge, hope it makes sense...a bit of it is hard to make out: