Russia's seafood industry hit by export disruptions

Russia’s fishery sector is experiencing more negative consequences from the blowback to Russia’s invasion of Ukraine, which has led to international sanctions and export disruptions.

The Russian Federal Agency for Fisheries has formed a special working group to help Russian companies facing challenges due to the sanctions, Telegram channel Ribfront reported on 3 March. The new group is chaired by the Russian Federal Agency for Fisheries Head Ilya Shestakov.

The agency asked companies to report any difficulties with sales, breakdowns in negotiations, the avoidance of contracts, or other export-related problems. In addition, it asked the captains of Russian fishing vessels to continue to follow the International Ship and Port Facility Security Code when their vessels are served in ports abroad.

Additionally, Russia's Ministry of Industry and Trade and the Russian Export Center have established a hotline for exporters to provide consultation on available state support should the companies face problems.

Those problems appear to have begun. On 3 March, media agency Sakhalin.info reported seafood shipments from companies in Russia's Sakhalin region have been denied entry to foreign ports. Sakhalin Region Fisheries Association President Maxim Kozlov didn’t say which ports have refused to buy fish from Russian ships, except to say seafood exports to China have continued without issue.

“We cannot say that our fish is denied everywhere, but fishermen feel where everything is going to," Kozlov said. "A day may come when nobody will buy our fish except China.”

Russia’s domestic market won’t be able to accommodate the entire catch, meaning a cessation of all exports would likely leave Sakhalin fishermen jobless, Kozlov said.

Another issue Russian vessels are facing is the refusal by foreign oil suppliers to refuel Russian ships from Sakhalin at sea. Multiple news sources have cited instances of fuel ships refusing to refuel Russian ships in protest of the invasion of Ukraine. 

In addition to short-term consequences, Russian companies will also likely face long-term negative consequences as business and promotion opportunities are missed. Seafood Expo North America and Seafood Expo Global organizer Diversified Communications announced Russia will be barred from participating in either expo. [Editor’s note: Diversified Communications also owns and operates SeafoodSource]

Russia had originally planned to have a national exposition at the two shows, but has been forced to cancel it due to sanctions-related logistical and financial challenges, Russia-based Expo Solutions Group Ivan Fetisov said.

“Today we cannot follow the basic values we use in serving clients,” Fetisov said. “We are deeply sorry that the current events have affected the seafood industry and business community in such a way.”  

Photo courtesy of Russian Aquaculture  

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