Russia’s seafood industry is bracing itself for the possibility international sanctions may result in interruptions in production, a loss of purchasing power, and reduced seafood consumption inside Russia as part of a degradation of the country’s economy.
Russian seafood companies are already running into issues caused by sanctions imposed by the United States, the European Union, and Great Britain. Vladivostok-based business paper Konkurent cited several local seafood executives who, speaking on condition of anonymity, said their companies had experienced a delay in receiving payment for pollock delivered to China. One of the executives said he believed the problem stemmed from the transaction running through a Russian bank targeted for sanctions. To send payment to a Russian supplier, a Chinese client first needs U.S. dollars, which necessitates the involvement of an American bank, making it possible for the United States to disrupt commerce.
The executives said, longer-term, they had concern that their international clients will cease buying Russian pollock due to the hassle and potential risk of their own reputations.
Rosselkhozbank, a state-owned bank funding Russia’s agriculture and fisheries sector, said that while it has been placed on an international sanctioning list, it had not yet detected any negative effect on its operations. The bank said it did not believe its placement on the list would impacts its clients.
Further complicating the situation for Russia’s seafood industry is the move by many of the world’s biggest shipping companies, including Maersk, MSC, and CMA CGM, to cease all shipments to Russia.
On Friday, 26 February, Russian Federal Agency for Fisheries Ilya Shestakov led a meeting with his agency’s staff and the directors of its regional branches, which was described in a press release as routine. During the meeting, Shestakov said Russia’s total seafood production of 5 million metric tons (MT) – the biggest in its history – would enable Russia to cover its domestic seafood demand. Shestakov said he predicted an even bigger catch in 2022, and he reported that, through 25 February, Russian companies had harvested 674,000 MT, a 7 percent year-over-year increase.
Russian ships continue to fish both in domestic and international waters, he said.
In the key seafood production territory of Kamchatka, Kamchatka Krai Governor Vladimir Solodov hosted a meeting with regional government officials to discuss the country’s current economic situation. Solodov said he is confident consumer prices will remain under control, but warned other areas of the region’s economy could be at risk.
“Special attention should be paid to the fishery industry,” Solodov said.
The country’s recent effort to upgrade its fishing fleet will be endangered by sanctions, as the shipbuilding sector is critically dependent on imported equipment not manufactured in Russia, Solodov said.
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