Investment quotas led to the construction of 29 fishing vessels, according to Dmitry Patrushev.
#Russian Fishing Industry's Modernization: The Investment Quota Program in Action
The Russian government has launched an ambitious plan to update and expand the country's fishing industry. Dubbed the investment quota program, this initiative aims to modernize the fleet, enhance labor productivity, and promote environmental friendliness and responsible use of marine resources.
A Fleet Revival in Progress
The program is well underway, with 29 vessels already at sea and another five on the horizon according to recent reports. The ultimate goal is to virtually replace the entire Russian fishing fleet. This plan kicked off in 2016, and the investment quota mechanism officially began operations in 2018.
Building the Future
As part of this program, over 100 ships, including 41 for catching crab, are currently being built in the first phase, which has been extended until 2026. The second phase will see the construction of fishing vessels, crab fishing vessels, and modern fish processing plants, as well as other projects.
The V.I. Lenin Fishing Collective Farm has already jumped on board, launching two modern vessels—the "Avacha" and "Oktyabrsky"—as part of the Project 04130 series. These vessels are designed for catching bottom-dwelling commercial fish species like cod in the Okhotsk Sea. Six vessels from this series have been completed, with four operational and two more recently launched by April 2025[6].
Cash Inflow and Industry Boost
Even though specific investment figures for the entire program haven't been disclosed, individual projects like Dobroflot's planned $38 million pollock processing plant in Nakhodka shed light on the magnitude of sectoral investments. The investment quota itself mandates that beneficiaries invest in domestic shipbuilding and processing, with the objective of renewing the fishing fleet and processing infrastructure[1].
Eastward Expansion
The program has contributed to a surge in Russian seafood exports, with a 61% year-on-year increase in fish fillet exports in Q1 2025. The value of seafood exports to China reached a record-breaking $682 million during the same period[3][4].
Challenges Ahead
Legal challenges have surfaced in relation to fines imposed on firms regarding investment quota commitments. Russell's Supreme Court has accepted an appeal by a Far Eastern seafood processor concerning such disputes, indicating ongoing oversight and enforcement[2].
Future Vision
Russia intends to significantly increase fishing capacity and landings, particularly for transboundary species like pollock. The government has outlined plans to boost catches of such species, signaling a focus on expanding resource bases and export volumes[5].
The Russian fishing industry is also eyeing Asia as a strategic market, particularly China, in an effort to diversify beyond traditional Western markets amid geopolitical tensions and trade sanctions[4].
New processing plants, like Dobroflot's planned facility in Nakhodka, are expected to come online in the coming years, driving value-added production and export competitiveness[3].
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#Russia #FishingIndustry #Investments #Shipbuilding #Fisheries #EconomicGrowth
[1] Rosrybolovstvo[2] TASS[3] The Bell[4] The Diplomat[5] RIA Novosti[6] MarketWatch
- The investment quota program, aimed at modernizing the Russian fishing industry, has led to a substantial increase in domestic investments in shipbuilding and processing, as seen in projects like Dobroflot's $38 million pollock processing plant.
- As part of the extended first phase of the investment quota program, over 100 ships, including fishing vessels and modern fish processing plants, are being constructed to expand the industry, deliver value-added products, and boost export competitiveness in both domestic and international markets, such as Asia, particularly China.
