SEAFOODNEWS.COM by Eugene Gerden — MOSCOW — Aug 5, 2014 –Sanctions imposed on Russia by Western countries will not have a negative effect on the country’s fishing industry, according to Russian leading fish producers and processors.
According to Alexander Fomin, president of the All-Russian Association of fishery entrepreneurs and exporters, currently the Russian fishing industry does not feel any consequences, regarding with the impositon of sanctions and there is a possibility that a favorable trade regime will continue.
At the same time, according to Alexey Aronov, the Executive Director, of the Russian Association of industrial and commercial enterprises of the fish market, there is a possibility that the sanctions may result in a drop of fish imports to the country and a decline of aquaculture salmon, mainly from Norway, which is currently estimated at 220,000 tonnes.
However he has also added that this will be only beneficial for Russia, as the majority of imported frozen fish in Russia is sold with a high content of glaze.
The same position is shared by George Martynov, president of the Association of Primorye Fish Industry Companies, according to him, sanctions will not affect Russian fishing industry, as the majority of fish is currently imported from Asia-Pacific states and China, which will not join to the sanctions.
At the same time, in case of China, both countries have not ruled out the possibility to start mutual payments in national currencies in the fishing industry. This will allow to further increase exports of fish and seafood to China. But this plan has already been criticized by some Russian fishery analysts he says, as the devaluation of national currency – the ruble and the increase of fish exports to China may pose a threat to food security of Russia.
At the same time, according to producers, among the major risks for the industry posed by sanctions are the inability of domestic producers to attract cheap loans in Western banks on favorable terms, as well as to conduct IPOs abroad.
This story originally appeared on SeafoodNews.com, a subscription site. It has been reprinted with permission.