Vietnam’s leading shrimp exporter, Minh Phu Seafood, has suspended exports of shrimp to Russia, Minh Phu CEO Le Van Quang told SeafoodSource on 8 March.
International sanctions imposed on Russia following its invasion of Ukraine have complicated commerce with Russia, as has the suspension of several Russian banks from using the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system, Quang said. Further complicating trade between Vietnam and Russia is the fact that international shipping companies are no longer providing services to Russia.
Russia was Minh Phu’s seventh-largest market in 2021, with sales of USD 22.24 million (EUR 20.3 million), down 20 percent from 2020. In the first two months of 2022, Minh Phu exported USD 1.35 million (EUR 1.23 million) worth of shrimp to Russia, down 61 percent year-on-year.
Vietnam Association of Seafood Exporters and Producers (VASEP) reported most Vietnamese shrimp exporters, including Minh Phu, Kien Cuong Seafood, Seaprodex Minh Hai, and Camimex, have encountered issues in their financial transactions with their Russian trading partners, with some reporting problems collecting payments for shipments. VASEP also said it was unsure if shrimp cargoes currently en route to Russia will clear customs, amid the tightening grip of international sanctions.
Vietnam had hoped to continue to build its shrimp sales to Russia following the 2016 enactment of a free trade agreement between it and the Eurasian Economic Union, which includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. However, in the interim, only a few Vietnamese companies have been granted permission to export shrimp to Russia due to Russia’s complicated approval procedures, as well as nontariff barriers such as strict food safety and quarantine regulations.
The value of shrimp exports from Vietnam to Russia last year was USD 44.5 million (EUR 40.6 million), down 0.8 percent year-on-year. During through 15 February, 2022, year-to-date sales had declined 23 percent to USD 3.3 million (EUR 3.0 million), according to the latest Vietnamese customs data.
Earlier this week, VASEP had also said exports of pangasius and tuna from Vietnam to Russia have been put on hold due to the ongoing Russia-Ukraine conflict.
Photo courtesy of Toan Dao/SeafoodSource
