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Fishing Industry: New Horizons
6 September 2022
15:00—16:30
KEY CONCLUSIONS
Fishing industry in Russia is stable and well financed

On the whole, I would like to say that the fishing industry is quite stable. If it were not for the salmon fishing season, in general our fishermen's catches are even higher than they were before the sanctions, and the logistics chain is built quite effectively by the business. Here our task in this shock period was <...> to help companies in the issues that they could not solve on their own — Ilya Shestakov, Head, Federal Agency for Fisheries (Rosrybolovstvo).

I absolutely agree with the statement <...> that our fishing industry is developing steadily, and our prospects are tangible and positive. As the main fishing region of Russia with the largest catches we are actively involved in it — Vladimir Solodov, Governor of Kamchatka Territory.

I think that we have great development prospects for both our domestic market and exports. <...> There really is a great number of opportunities, which could and should be implemented – progressively, consistently, without any faltering — Olga Naumova, General Director, Russian Fishery Company.

The trend that I can note is financing the industry in Chinese yuan, and other currencies will come sooner or later. This is a fairly large and wonderful trend. So overall, we are optimistic: there is money and there are significant rouble resources in the bank and in the banking system. <...> I will repeat: <...> dollar and euro in revenues: this will not always be the case. We must prepare for this, of course, because it can happen quickly. I would not want us to come to this point unprepared — Vladimir Sitnov, Senior Vice President, Sberbank.

There are quite a lot of promising markets for exports. <...> Here it seems there are good prospects too. We can vigorously increase our supply of products, which, as it seemed before <...> is not a priority for the domestic market. My vision is that our current condition and prospects are good. In general, we are optimistic, the most important thing is that the ships are completed and the shipyards — Ilya Shestakov, Head, Federal Agency for Fisheries (Rosrybolovstvo).

ISSUES
Import dependency and loss of foreign markets

In general, it turned out that in terms of fishing vessels we were in the most import-dependent position. Unlike the icebreaker fleet, unlike the river-sea ships, <...> it turned out to be the most import-dependent direction. <...> There's more than 60% [dependence – Ed.] on foreign equipment, especially in the fishing — Viktor Evtukhov, State Secretary – Deputy Minister of Industry and Trade of the Russian Federation.

Now, the sanctions pressure that has been put on us in recent months has been quite challenging for our fishery basins. We need to separate the problems in the Northern Fishery Basin, which are one thing; the problems in the Far Eastern Fishery Basin are different. If in the Northern Basin we encountered much bigger problems related to logistics, to restrictions on the supply of products that were imposed by unfriendly countries, in the Far East we adapted to the sanctions much more successfully — Ilya Shestakov, Head, Federal Agency for Fisheries (Rosrybolovstvo).

Now the market has dipped, and it has dipped very seriously. In absolute terms, prices have fallen by half for a whole range of frozen products. Considering that the market volume in America is about 40% of the Far East products and almost all the products of the North, you understand the financial costs and problems faced by our group of companies — Andrey Polomar, General Director, Antey Asset Management.

Our second task <...> is, of course, to finish all those investment projects we started. There are quite a lot of problems there, and we know that we already have a fairly serious delay in the construction of vessels. We will have problems related to the fact that many suppliers have refused to provide equipment for our fishing vessels. And there will be certain difficulties which we will solve together with the Ministry of Industry and Trade — Ilya Shestakov, Head, Federal Agency for Fisheries (Rosrybolovstvo).

SOLUTIONS
Balance between land and sea

We need to practice the flexibility of our response to different turbulent market conditions. <...> Onshore production is much more flexible to be fine-tuned and adapted to changing demand. I believe that at the very least there should be a balance between onshore and offshore processing. This is exactly what <...> the President of the Russian Federation [Vladimir Putin – Ed.] voiced during the public discussion of the master plan for the development of Petropavlovsk-Kamchatsky, that we should be very balanced about it — Vladimir Solodov, Governor of Kamchatka Territory.

We can find – and do find – Russian suppliers for some equipment, there is Kurs labs <...> there is a large amount of equipment which we are ready to deliver for Russian shipbuilding industry, for Russian customers. It has already been digitized. But there is critical imports list, we have defined it: it contains more than 60 items. We are now receiving funding <...> from the Government for three years to replace these critical items — Viktor Evtukhov, State Secretary – Deputy Minister of Industry and Trade of the Russian Federation.

Fighting counterfeit produce

Labeling products for any commodity group and, naturally, for caviar <...> allows the consumer to see the movement of products, to see where this caviar comes from, to see some information related to the history of its provenance. At the same time the state has the ability to use all the analytical tools to compare the data from the labeling with the data from the Mercury system. This is how, for example, it is already implemented in milk — Alexander Demyanov, Member of the Board of Directors, Advanced Technologies Development Center (ATDC); Managing Director, VEB.RF.

The crab companies of the Far East and the North are evidently not ready for the introduction of the next stage of auctions, so we ask you to wait a little, to think about the current situation and, again, to choose the best ways, methods and solutions for the introduction of auction quotas — Andrey Polomar, General Director, Antey Asset Management.

If we don't teach people to eat fish from their childhood, no one will eat it in adulthood, so there are a lot of problems in this sense. But if we combine our efforts, I think it will work out — Igor Bukharov, President, Federation of Restaurateurs & Hoteliers of Russia.

Building a fleet

There should be several standardized projects [of vessels – Ed.] to enter into the series so that we will be able to offer the customer a really good price. Because indeed, all customers say: it is cheaper to build ships in China and even in Turkey than in the Russian Federation — Viktor Evtukhov, State Secretary – Deputy Minister of Industry and Trade of the Russian Federation.

Only a medium-sized, small-capacity fleet will allow us to deliver catches in fresh, chilled form for full onshore processing — Andrey Polomar, General Director, Antey Asset Management.

We got a big order from companies that primarily participated in the Quotas Under the Keel competition. These are both fishermen and crab boaters. We have a total order book of 105 vessels, nine have been delivered, nine will be delivered this year, 70 are now under construction — Viktor Evtukhov, State Secretary – Deputy Minister of Industry and Trade of the Russian Federation.

The material was prepared by the Russian news agency TASS