The Accounts Chamber is set to publish a report titled “Assessment of the effectiveness of using commercial aquatic biological resources and the evaluation of federal budget funds dedicated to building fishing vessels and coastal facilities in 2017-2021 and late 2022.” The document draws on the results of a joint control initiative involving the auditing bodies of Russia’s federal subjects and the Joint Venture. It marks the first time the SAI report encompasses all forms of audits, including strategic reviews, as part of a single control measure.
about what
In 2017, Russia began the initial phase of an investment quota program for extracting aquatic biological resources. In exchange for committing to construct new fishing vessels at Russian shipyards or to establish onshore processing plants, the state allocated 20% of the allowed catches for herring, cod and pollock in the Far East, and cod and haddock in the North. Under this program, fishing companies promised to build 64 ships and 27 processing facilities, with total investments exceeding 240 billion rubles. A large portion of these funds came from loans backed by the Savings Bank of Russia. To date, only 7 ships and 21 factories are in operation.
In 2019, the Federal Fisheries Agency conducted its first crab auctions, redistributing half of the quotas to owners who signed contracts with the state through 2033 the prior year. The final lot was sold in 2021. In total, 41 batches fetched about 144.2 billion rubles, and the winners were also required to construct 41 crab fishing boats, adding roughly 60 billion rubles in costs for fishermen. Of the promised 41 crabfish projects, just 3 have been completed so far.
The first phase remains active, but at the end of last year officials announced the launch of a second phase in 2023. The proposed Draft Law Amending the Federal Law on Fisheries and Conservation of Aquatic Biological Resources (to improve the mechanism for investment quota allocation) envisions 24% of the resource quotas for extraction. Herring and pollock in the Far Eastern basin are to be reserved for the creation of modern ships or coastal processing facilities. The government also intends to hold tenders tied to investment commitments. As a consequence, 100% of quotas for Far Eastern mollusks and other aquatic invertebrates, and 50% of all crab quotas, would be redistributed.
In March, the All-Russian Fishermen’s Association (VARPE) concluded that the second phase’s investment quotas would cause losses that far exceed the initial investments. The association’s analysis estimated that the total sector loss could reach 998 billion rubles, about 3.2 times the invested amount.
promise to the auditor
Earlier, VARPE, the Russian Union of Industrialists and Entrepreneurs (RSPP), and OPORA Rossii urged a pause on amendments to the primary fisheries law. Regional governors warned about potential socio-economic fallout, including the bankruptcy of small firms, rising unemployment, and dwindling regional budget revenues. In October, the Court of Accounts offered its assessment of the bill. A draft of the document is available to editors.
The Joint Venture highlights that approving the bill would not only harm businesses and local budgets but would also raise consumer prices for fish products. Fishermen already carry significant debt, with loans totaling around 150 billion rubles. A further rise in debt could jeopardize first-phase investment projects and fuel higher costs passed on to consumers through auctions and new projects. The report suggests that costs borne by investors will influence pricing in the market.
Additionally, the document points to other risks associated with the proposed reforms and notes that current statistics do not reliably reflect the outcomes of the first phase or verify any positive impact from state support mechanisms.
Vote – don’t vote
The second phase parameters and the draft amendments to the “Law on Fisheries” were submitted to the State Duma on July 28. Three months later, the first reading occurred. During debates, MPs from all factions supported moving the reading forward. The Duma decided to finalize the document and establish a conciliation commission to reconcile differences.
Vladimir Kashin, head of the agricultural issues committee, observed that the Communist Party’s faction worried about deputies voting in favor of the initiative. He stressed that much work remains for the deputies to finalize the text. “As committee chair, I want to remind you—this is our shared responsibility. We are convinced we are on a good path to avoid risks at the outset.”
The reconciliation commission, chaired by State Duma Deputy Speaker Alexei Gordeev, told lawmakers that the primary aim of the bill should be ensuring accessible and diverse fish supplies for Russians, not merely increasing ship and factory counts. The process involved lawmakers, senators, the Ministry of Agriculture, the Federal Fisheries Agency, regional authorities, and industry associations to craft changes. The commission’s recommendations will inform an updated version of the bill, which the agricultural issues committee will present for a second reading.
work on bugs
Even as the invoice moves toward the second reading, deputies from all groups—several parties—remain active. Proposals converge on clarifying the bill’s norms, including delaying crab tenders, preserving the “quota for fleet” approach, dropping shellfish tenders, requiring shipbuilding alongside coastal facilities, and keeping incentives for first-phase investors. Similar reforms have been voiced by senators as well. The Federation Council stresses that strong protection for small and medium-sized fishing enterprises lies in excluding them from the second-phase investment quotas. On October 4, Valentina Matvienko emphasized that regional leaders oppose the contested plan, and regional administrations have voiced concerns about the possible impact on coastal economies.
Regional leaders and lawmakers across Sakhalin, Kamchatka, Khabarovsk, Murmansk, Magadan, and other coastal areas push for changes to prevent a full redistribution of quotas and the resulting negative effects on coastal communities. The outcome of the first phase’s implementation will guide the finalization of the draft law and the timing of certain provisions. A final, public release of the Court of Accounts’ strategic audit remains anticipated for December 20.