Workers at small- and medium-sized Russian fishing companies have launched a campaign to halt the second investment-quota program that Russia’s Federal Agency for Fisheries wants to begin in 2023.
In December 2021, the Russian government announced plans to expand its investment-quota program, which regulates the distribution of fishing rights based on investment in new fishing and processing infrastructure. In letters sent to Russia’s Independent Trade Unions Federation (ITUF), workers at small- and medium-sized Russian fishing companies claim that the new program will leave thousands of fishermen without jobs.
Business journal Vedomosti reported that the ITUF received more than 30 letters from the employees of a number of different companies. ITUF Deputy Chairman Alexander Shershukov said the workers view redistributing fishing rights for seafood, including for valuable species like crab and shellfish, as a risk to their livelihoods.
The government proposal calls for 20 percent of the total allowable catch for pollock be distributed among companies willing to buy quotas via investment in new ships or new processing facilities. That is on top of a proposal to auction off the remaining 50 percent of its crab quota. A separate proposal is calling for investment-quota auctions for 100 percent of Russia's deep-sea scallop, whelk, gray sea urchin, black sea urchin, and sea cucumber quotas.
That plan, the letters say, will mean withdrawal of the quotas from some current holders that don’t have the money to take part in the auctions. For example, Sandi, a company specializing in sea urchins, said the company cannot put any money toward the auctions. The program will therefore eliminate the company’s 571-metric-ton quota, despite the fact its contracts have not yet expired, Vedomosti reported.
Fishermen are asking the ITUF to consider the issue and protect labor rights. Shershukov told Vedomosti the organization plans to consult the Seafood Workers Trade Union, and if the parties agree that the fisheries reforms will have a negative effect on employees, the issue will be discussed by the Trilateral Labor Commission, headed by Russian Vice Premier Minister Tatyana Golikova.
The Russian Federal Agency for Fisheries told Vedomosti it has not composed a final list of shellfish quotas to be auctioned, and that it is still deciding what to do with the current crab-quota holders.
In late 2021, the plan was negatively reviewed by Russia's Fishery Agency, which objected to the absence of detailed calculations of the socio-economic benefits of the plan, and expressed concern the move could monopolize the industry.
The previous crab-quota auctions saw the emergence of a new “crab king,” Gleb Frank, when his company won more than one-third of the quotas up for auction. With more auctions planned, large companies are beginning to invest more money and seek more quota, while smaller companies are opposed to the changes.
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