Subsidies for Rail Transport of Russian Pollock: Impacts on Domestic Prices and Supply Chains
Russian fishing enterprises have exhausted the existing subsidies allocated to move frozen fish from the Far East toward central markets, a development that could tighten the domestic supply and push prices higher if officials do not authorize fresh support for shippers. This assessment comes from reporting in Kommersant, which cites a letter from Alexei Buglak, head of the Pollock Miners’ Association, addressed to Deputy Prime Minister Victoria Abramchenko and to key industrial stakeholders. The letter highlights a program designed to subsidize rail transport of both frozen pollock and pollock fillets, a policy first launched in 2021. The push to sustain such subsidies stems from past logistical hurdles that complicated deliveries to China during travel restrictions linked to the pandemic. At present, however, the Ministry of Agriculture has paused new approvals under the program because the subsidy quotas have been exhausted, according to the article. This pause has meaningful implications for the internal market: the cost of moving per kilogram of pollock from the Far East to central regions averages around 20 rubles per kilogram, and this cost accounts for roughly a quarter to a fifth of the market price for frozen pollock. In other words, each kilogram benefits from a tariff subsidy of about 6 rubles, a figure that helps keep consumer prices stable and supports domestic demand. If the approval pipeline remains blocked as subsidies run dry, the price advantage disappears and transport costs could be passed on to retailers and consumers, potentially dampening demand and altering the price landscape across the regional markets. Across the supply chain, traders and processors rely on predictable subsidy flows to balance margins, schedule shipments, and maintain steady availability for city markets. The current impasse underscores how government fiscal instruments can shield the domestic fish market from price volatility while also highlighting the sensitivity of pricing to policy timing and budgetary caps.
Further developments emerged from changes being considered within the Eurasian Economic Union framework. Reports from Vedomosti on May 17 note that adjustments to the Eurasian Customs Code could raise the cost of fish within Russia, particularly if catches are conducted in areas governed by international agreements that are not categorized as EAEU products. In such scenarios, the value of finished goods could rise, potentially affecting consumer prices and the competitive position of domestic producers in both domestic and neighboring markets. The evolving policy landscape is likely to have repercussions for domestic supply chains, including transport logistics, processing schedules, and export readiness. Stakeholders in Russia’s fishing sector are watching closely how future rules and subsidy allocations might harmonize with broader regional trade arrangements, aiming to maintain affordability for consumers while sustaining viable margins for fishermen and processors in the face of shifting regulatory and market forces.