The Russian government will provide support to leading domestic fish producers in exchange for increasing supplies in the domestic market. The subsidies aim to overcome the price differential producers can get selling fish for export, and will also pay companies not to raise domestic prices.
Up to seven Russian leading fish producers, based in the Far East, among which are Preobrazehensky Base of Trawl Fleet, Nakhodka Active Marine Fishery Base, OJSC Dalmoreproduct, Intraros, Roliz, JSC Yuzhmorrybflot and JSC Yuzhmorrybflot, may receive financial support from the state this year.
In the case of Nakhodka Active Marine Fishery Base, at present the company remains one of Russia’s largest producers of squid and pollock, a significant part of which, however, is supplied to abroad. According to state plans, the provision of financial support, the amount of which is not disclosed, will allow the company to increase supplies of its products to the domestic market and to freeze a further increase prices for it for local consumers.
In addition, the provision of state funds will allow the company to complete modernization of its fishing fleet.
At the same time, in the case of Preobrazehensky Base of Trawl Fleet, being one of Russia’s largest producers of pollock and herring, the company, so far, has been mostly focusing on the supplies of its fish on the foreign market. The company currently also holds quotas on the production of urchin, shrimp and crab, the majority of which, so far, has been also supplied to abroad. However, according to an official spokesman of Rosrybolovstvo, such a situation may change already in the near future, as the company has already promised to increase the supplies to the domestic market, in the case of the provision of financial support from the state.
A significant part of funds will be also provided to Yuzhmorrybflot, one of Russia’s largest producers of canned fish and the country’s largest supplier of canned Pacific saury, one of the most important products for Russian poor people, prices for which are sometimes regulated by the state.
There is also a possibility of the provision of state support to some Murmansk cod producers, and in particular Murmansk Fish Factory, 70% of which cod production, so far, has been exported to abroad.
At the same time some Russian analysts have already criticized the decision of the state to include Intraros and Roliz in the list of companies that will receive state subsidies, due to their affilation with Russian Fishing Company, and Karat fishing enterprise respectively, both of which are mostly concentrated on fish exports.