Russia's Federal Agency for Fisheries (Rosrybolovstvo) has chosen the winners of its second round of 2023 crab quota auctions.
Russia released the results of the first round of auctions on 16 October, selling quota for multiple species of crab in 27 separate lots. Rosrybolovstvo estimated the auctions would bring in RUB 214.5 billion (USD 2.4 billion, EUR 2.2 billion) to federal coffers and result in the construction of more than 20 crab-fishing vessels and multiple “large logistics complexes” for the fishing industry, as a condition of the sales.
According to Fishnews, Amurrybprom, DVKK, Phoenix, The Pacific Fisheries Company, Sigma Marine, Vostok, Ostrovnoy-Krab, Kalan, Vladcrab and B-Crab – who are members of the Russian Crab Company Group – Far Eastern Crab, Antey Group, and The Eurasion Fish Center won lots in the initial quota auction.
Russia later sold another lot on 10 November to Amurrybprom, giving it 100 percent of the shares of king crab in the South Kuril zone, hairy and snow crab in the Kamchatka-Kuril zone, and gold king crab in the Okhotsk Sea for RUB 6.6 billion (USD 73.9 million, EUR 68.1 million). The company will also be required to build a new fishing vessel in a Russian shipyard as a condition of the sale.
Rosrybolovstvo announced it will hold another auction for four lots of share quota for deep-sea crab on 22 November, with a starting price of RUB 507 million (USD 5.6 million, EUR 5.2 million). Those include quota for red snow crab in the Primorye and West Sakhalin subzones, and angulatus snow crab in the East Sakhalin and North Sea of Okhotsk subzones.
The investments required by the industry in infrastructure will likely amount to more than RUB 500 billion (USD 5.6 billion, EUR 5.1 billion) over the next 15 years, the Russian Association of Crab Harvesters said.
“At this stage it is difficult to make accurate calculations, but this amount shows the real level of costs that investors participating in auctions will incur over a 15-year period,” the association's president, Alexander Duplyakov, told Fishnews.
All Russian Association of Fisheries (VARPE) President German Zverev told Fishnews the budgetary efficiency of the auctions was better than in 2019, and provided a “good result.” He also said that there will be no “crab bubble” and that companies weren’t hit by “irrational optimism” when bidding for the quotas of crab.
The Antey Group, however, said market conditions for crab will complicate its future business.
“Current economic conditions pose new challenges for us. The European and American markets are closed to us; in Russia, unfortunately, there is no demand for crab consumption; Asia remains the only buyer,” Antey General Director Andrey Polomar told Fishnews. “The Chinese, for example, value and love live crab, but they are not interested in fresh frozen crab. Therefore, we have to develop more and more new logistics routes.”
Polomar said that will be a complicated endeavor.
“This is a complex, labor-intensive, and financially expensive process. In addition, we are updating our fleet, building new shelters for live crab, and participating in the social life of the regions where we operate,” Polomar said.
Duplyakov said that the auctions and the investments will mean crab is no longer a “super-profitable” activity. But crab companies may have felt they had no choice but to bid, as the
The auction revealed the commitment of a variety of players to Russia's crab sector.
Amurrybprom paid RUB 3.1 billion (USD 34 million, EUR 32 million) for the rights to 100 percent of the quota of opilio in the West Sakhalin subzone; hairy crab in the Kamchatka-Kuril subzone; spiny crab in the Primorye, South Kuril, and East Sakhalin zones; and blue crab in the East-Sakhalin subzone. The company will be required to construct a fishing vessel for the quota.
DVKK purchased two auctions for 11.11 percent of the quota for opilio in the North Sea of Okhotsk, red king crab in the North Sea of Okhotsk, West Kamchatka and Kamchatka-kuril subzones, and blue crab in the North Sea of Okhotsk, paying a price of RUB 7.6 billion (USD 85 million, EUR 78.4 million). The company will be required to build a large logistics complex as part of its purchase.
Phoenix acquired 11.11 percent of the quota for opilio in the North Sea of Okhotsk, red king crab in the North Sea of Okhotsk, West Kamchatka and Kamchatka-kuril subzones, and blue crab in the North Sea of Okhotsk, and paid over RUB 7.9 billion (USD 88.4 million, EUR 81.5 million). The company will be required to construct two crab-fishing vessels.
Vostok also won the right to 11.11 percent of the quota in the same regions for RUB 7.9 billion (USD 88.4 million, EUR 81.5 million), and agreed to build two new crab-fishing vessels.
The Pacific Fisheries Company won a single lot of the auction, gaining 5.55 percent of the quota of opilio in the North Sea of Okhotsk, red king crab in the North Sea of Okhotsk, West Kamchatka and Kamchatka-Kuril subzones, and blue crab in the North Sea of Okhotsk. The company paid RUB 7.9 billion (USD 88.4 million, EUR 81.5 million) for the quota and will need to construct a single fishing vessel.
Sigma Marine won three different lots during the auction. It purchased rights to 25 percent of the quota of snow crab and opilio crab in the West Bering Sea zone and Karaginsk subzone, and blue crab in the West Bering Sea zone, for RUB 10.4 billion (USD 116.4 million, EUR 107.3 million). For the first lot, it will need to build a new crab vessel. For its second lot, Sigma Marine won 33.33 percent of the fishing quotas for opilio, blue, and golden king crab in the Western Kamchatka subzone and snow crab in the Kamchatka-Kuril subzone for RUB 7.1 billion (USD 79.5 million, EUR 73.3 million), and will be required to build another crab vessel. The final lot was 5.55 percent of the quota of opilio in the North Sea of Okhotsk, red king crab in the North Sea of Okhotsk, West Kamchatka and Kamchatka-Kuril subzones, and blue crab in the North Sea of Okhotsk, for RUB 7.9 billion (USD 88.4 million, EUR 81.5 million), and the agreement it builds a third fishing vessel.
Ostrovnoy-Krab won four different auctions. The first is for 25 percent of the quota of snow crab and opilio crab in the West Bering Sea zone for RUHB 10.4 billion (USD 116.4 million, EUR 107.3 million), with requirements to build a crab vessel. The second was for 33.33 percent of the fishing quotas for opilio, blue, and golden king crab in the Western Kamchatka subzone and snow crab in the Kamchatka-Kuril subzone for RUB 7.1 billion (USD 79.5 million, EUR 73.3 million), also with the requirement to build a crab vessel.
Ostrovnoy-Krab also won two identical lots in the Sea of Okhotsk, each for more than RUB 7.9 billion (USD 88.4 million, EUR 81.5 million). The two lots give it the rights to 11.11 percent of the quota for opilio in the North Sea of Okhotsk, red king crab in the North Sea of Okhotsk, West Kamchatka and Kamchatka-kuril subzones, and blue crab in the North Sea of Okhotsk, with the obligation it build two crab vessels.
Kalan was the only applicant for the lot it won, which gave it 100 percent of the quota of gold king crab in the North Sea of Okhotsk, central sea of Okhotsk, and South and North Kuril zones. It paid RUB 5.6 billion (USD 62.7 million, EUR 57.8 million) for the rights and must build a crab vessel.
Russian Crab Company-owned Vladkrab purchased multiple lots at the auction. The first was 25 percent of the quota of snow crab and opilio crab in the West Bering Sea zone and Karaginsk subzone, and blue crab in the West Bering Sea zone for RUB 10.4 billion (USD 116.4 million, EUR 107.3 million), with the obligation to build a fishing vessel. The second lot netted it rights to 5.55 percent of the quota of opilio in the North Sea of Okhotsk, red king crab in the North Sea of Okhotsk, West Kamchatka and Kamchatka-Kuril subzones, and blue crab in the North Sea of Okhotsk for RUB 7.9 billion (USD 88.4 million, EUR 81.5 million). This lot also requires a new fishing vessel. The third lot gives it rights to 33.33 percent of the fishing quotas for opilio, blue, and golden king crab in the Western Kamchatka subzone and snow crab in the Kamchatka-Kuril subzone, for RUB 7.1 billion (USD 79.5 million, EUR 73.3 million). The company will be required to build a third fishing vessel as part of the acquisition.
Russian Crab Company-owned B-Crab purchased 5.55 percent of the quota of opilio in the North Sea of Okhotsk, red king crab in the North Sea of Okhotsk, West Kamchatka and Kamchatka-Kuril subzones, and blue crab in the North Sea of Okhotsk for RUB 7.6 billion (USD 85 million, EUR 78.4 million). It must build a small logistics complex as part of the auction win.
Far Eastern Crab, meanwhile, won three lots, giving it 16.665 percent of the quota to opilio in the North Sea of Okhotsk, red king crab in the North Sea of Okhotsk, West Kamchatka and Kamchatka-Kuril subzones, and blue crab in the North Sea of Okhotsk for RUB 7.9 billion (USD 88.4 million, EUR 81.5 million). For winning three lots, it must build three crab vessels.
Antey also won three lots. The first garnered it 25 percent of the quota of snow crab and opilio crab in the West Bering Sea zone and Karaginsk subzone, and blue crab in the West Bering Sea zone, for RUB 10.4 billion (USD 116.4 million, EUR 107.3 million). It must build a crab fishing vessel for the auction.
The next two lots Antey won gave it 11.11 percent of the quota for opilio in the North Sea of Okhotsk, red king crab in the North Sea of Okhotsk, West Kamchatka and Kamchatka-kuril subzones, and blue crab in the North Sea of Okhotsk for RUB 7.9 billion (USD 88.4 million, EUR 81.5 million), and it must build to crab fishing vessels.
Finally the Eurasian Fish Center won rights to 5.55 percent of the quota of opilio in the North Sea of Okhotsk, red king crab in the North Sea of Okhotsk, West Kamchatka and Kamchatka-Kuril subzones, and blue crab in the North Sea of Okhotsk for RUB 7.9 billion (USD 88.4 million, EUR 81.5 million). It now must build a large logistics complex as part of the investment-quota process.
Photo courtesy of the Antey Group
