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EastRussia Bulletin: Regulation of distribution of fish investment will be finalized - EastRussia | Far East

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EastRussia Bulletin: The regulation of the allocation of fish investment will be finalized

EastRussia Bulletin: The regulation of the allocation of fish investment will be finalized
Photo: EastRussia
Last week, during a meeting of the subcommittee on the development of the fisheries complex of the Far East, Yuriy Trutnev, the deputy prime minister and the presidential envoy to the Far Eastern Federal District, insisted on finalizing the procedure for allocating investment quotas, the latest issue of the EastRussia bulletin says. Possible changes in the operation of the investment-quota mechanism, the prospects for construction of ships and the loading of orders by shipbuilding plants, as well as proposals for the distribution of crab quotas, were discussed.

According to the decisions, in particular, by the end of the year, the regulatory framework for working with investment quotas will be simplified, taking into account the interests of the fishermen of the Far East. Also, the imperfection of the current commissioning principle of selection, which is used if the quota has not been fully chosen, will be excluded. As a result, the commission principle will be replaced by the auction. In the future, it is proposed to make the procedure for allocating quota shares more understandable for a business using a fall auction if the 25% bar for investment quotes for onshore plants is exceeded. It is also planned to get away from strict requirements for the catch of investment quotes. It was decided to include in the list of investment objects a medium-tonnage fleet under the quotas of pollock and herring. At the same time, experts previously noted that investment quotes are beneficial only to large-tonnage fleets.

Concerning the construction of ships, the Ministry of Industry and Trade is charged with developing a set of measures to support shipbuilding in the Far Eastern factories. At the moment, the regulatory framework provides that in case the ship is planned to be built at the shipyard in the Far Eastern Federal District, an incremental coefficient 1,2 will be used to calculate the size of the share of the investment quota. However, the authorities have already paid attention to the fact that the fleet is ordered primarily at the factories of the European part of Russia. Following the meeting, the subcommittee learned that the fisheries enterprises of the DFO left preliminary applications for the construction of 10 ships (47 billion rubles) and 18 fish processing enterprises (19,7 billion rubles) for investment quotas. All orders refer to large-capacity vessels and go to the shipyards of the European part of the country. The main problem of the Far Eastern factories is the lack of modern equipment (for example, there is a disposal mechanism, which is not adapted for the needs of Far Eastern shipyards). To switch to a new output of products, Far Eastern factories require state support, and the Ministry of Industry and Trade will develop measures to support them.

The distribution of crab quotas remains an equally important topic. Yuri Trutnev supported the crab investments, which, in his opinion, corresponds to Vladimir Putin's instruction to develop shipbuilding, to order ships in the Far Eastern shipyards, including crabs. According to Yury Trutnev, the enterprises declared their readiness for the process of updating the fleet and that they have already placed preliminary applications for vessels. But the main issue remains related to the issuance of a government decree regulating the provision of investment letters and the decision to exclude crabs from the historical principle. In this topic, we should also note the rotation of the governors as part of the government commission on the development of the fisheries complex, and the representative of the Ministry of Economic Development of Russia also joined the work of the commission. So, the coordinating body was replenished by the Governor of the Kamchatka Territory Vladimir Ilyukhin, and the Governor of the Sakhalin Region Oleg Kozhemyako was excluded from the commission. These changes generally correspond to the high activity of the Kamchatka fish lobby and less stable positions of Sakhalin representatives of the industry.

A detailed analysis of this and other relevant topics can be found in the weekly bulletin EastRussia (https://www.eastrussia.ru/subscribe/).