The Ministry of Industry and Trade of the Russian Federation, and the Russian Association of Fisheries, Entrepreneurs and Exporters (VARPE), have signed an agreement of cooperation in the realm of fishing fleet building and development of the national fishery industry.
The agreement, signed by Deputy Minister Oleg Ryazantsev and VARPE’s President German Zverev, encompasses a wide range of topics. The agreement is an attempt to establish an information exchange on shipbuilding and fleet renovation in order to help the regulator enhance the management of the industry and define the directions for innovation.
In 2016, Russia introduced incentives for fisheries to renew their fishing fleets. The centerpiece of these incentives is additional quotas for commercial species allocated to companies which want to get their new ships built at Russian yards. The first quotas were allocated in April this year.
The Ministry of Industry and Trade is responsible for the management of production of locally produced ships including such measures as regulation, control, and coordination of designs of new ships; providing state-funded instruments to boost investments; international cooperation; and localization of production in Russia.
“We are weighing opinions and feedback from VARPE and other fishery industry participants about which ships you need and what can be improved in the regulation,” said Ryzantsev.
He called fisheries for help in the localization of production of equipment for fishing vessels.
“We would like you to say your word on it, to give us technical requirements for equipment installed on ships,” he said. “We see that Russian shipyards can build fishing vessels, but the share of Russian producers in supply of ship’s equipment is near zero. We want to change it.”
The deputy minister noted that the Ministry can provide a wide range of instruments of state support to help businesses renew their fleets besides the quotas – such as subsidies, utilization grants, and leasing schemes – but fisheries are surprisingly reluctant to use it.
VARPE’s representatives in attendance also brought to notice the difference between the cost of a buildup of a fishing vessel at a Russian shipyard and abroad. Currently, production of a vessel in Russia is on an average three times more expensive than abroad, so the prospects of domestic producers seem rather questionable after the incentives have expired.
Another subject raised by the VARPE’s members was the necessity to establish repair facilities and post-sale support of ships manufactured in Russia.
Zverev expressed hopes for the continuation of the dialog and close cooperation in the future.
“I agree we should use the instruments of state supports proposed by the Ministry, which we sometimes even don’t know about,” he said. “That’s an interesting topic for further discussions.”
Far East Crab Fisheries Association’s President Alexander Duplyakov called the agreement “a very timely document,” as crab fishermen are going to have nearly 40 vessels built over the next five years in case incentive quotas will also be introduced for crab.
