Russia’s FAS Notes the Risk of Monopolization of the Market of Crab and Certain Fish Species Extraction

Russia’s FAS Notes the Risk of Monopolization of the Market of Crab and Certain Fish Species Extraction
Photo: unsplash.com 19.07.2023 506

The FAS experts believe that the forthcoming distribution of investment quotas may lead to such a result, Vedomosti reported. 

The redistribution of quotas for the extraction of crab and certain species of fish at tenders within the framework of the second stage of the investment program may lead to "prevention, restriction and elimination of competition," the FAS believes. 

This assessment is given in an official letter from FAS to the Ministry of Agriculture in preparation for the meeting of the government commission on the development of the fishery complex, which is scheduled for July 25. The document was signed by Deputy Head of FAS Sergey Puzyrevsky. The Ministry of Agriculture confirmed  receiving it to Vedomosti.

The law on the second stage of the investment quotas program was adopted at the end of 2022. Within its framework it is supposed to redistribute 50% of all rights for crab and 24% - pollock, herring and a number of other fish species in the Far East. 

The letter says that the sum of the two stages will result in the redistribution of 100% of crab quotas and 44% of certain fish species: 

"This may lead to the concentration of a large volume of rights to catch aquatic bioresources in the hands of certain groups of individuals and lead to monopolization of the industry."

Experts of the Accounts Chamber reported back in late 2022 that the possible monopolization threatens to destroy the industry with the introduction of full-scale sanctions against the largest quota users.

Source: Vedomosti

food markets  Russia 

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