The Federal Fisheries Agency will allocate Kamchatka crab catch quotas in the Barents Sea at a price about 1.3 billion rubles lower than previously expected, RBC reports.
The move follows the cancellation of the November 13 tender after no bids were filed. The plan, officials say, was to sign contracts with auction winners that would require the construction of fishing vessels and the creation of logistics complexes over a 15‑year term. This approach tied revenue potential directly to long‑term investments, aligning incentives for fleet renewal and improved supply chains while exposing participants to higher capital costs during a period of market volatility.
Original lots carried a starting price of 12.8 billion rubles for each. The rescheduled auctions set a price of 11.5 billion rubles per lot and are scheduled for November 28. The downward adjustment reflects changing market conditions and the need to attract bidders who are balancing the cost of capital with the uncertainties of quota allocations in a highly regulated sector.
Sergei Nesvetov, executive director of the North‑West Fisheries Consortium, told the publication that 2024 quotas in the Northern Basin were overvalued. Demand for Kamchatka crabs remained strong, but the combination of a higher key rate and the obligations to build ships and logistics facilities means returns from crab batches will be about 1.5 times lower than the interest on purchase loans. In practical terms, producers face thinner margins as debt service climbs while the value of the harvest must cover more expensive financing and construction commitments.
In October, the largest associations of the fishing industry warned that profits for companies relying on loans to buy quotas and to finance ship and factory construction are shrinking. The warning signaled a broader tightening of credit conditions and a tougher capital environment for mid‑sized players who have to service debt while awaiting returns from auctioned quotas and new processing capabilities. This shift has raised concerns about the resilience of coastal communities that depend on crab fisheries and related jobs in Canada and the United States that monitor global seafood supply chains.
Russian crab fishermen in the small and medium business segment reported losses in historic catch volumes after quota distributions at auctions. The Khabarovsk Eastern Fishing Company has asked President Vladimir Putin for permission to catch more crabs in light of the recent disruptions. By 2024, the company had lost between 54% and 85% of its production, a stark reflection of how financing requirements, regulatory hurdles, and market shifts can squeeze output for regional players and ripple through local markets that rely on steady supply and price stability.
Manufacturers have warned that prices for fish and seafood are rising, adding pressure on buyers in international markets where Canadian and American consumers watch raw material costs, processing margins, and retail prices closely. The evolving policy and market environment in Russia’s crab sector underscores the interconnected nature of global seafood trade and the ways in which policy choices in one region can influence supply and pricing in another, even as buyers in North America seek reliable imports and predictable pricing for the coming seasons.