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The mechanism of state support for shipbuilders and processing will be updated to 1Q 2017

Ship on the fishery. Photo: press-office of Federal Fishing Agency of Russia

The Ministry of agriculture of Russia, fulfilling the instruction of Russian President Vladimir Putin, has sent the Government of the Russian Federation draft normative acts that will allow to establish an efficient mechanism of state support (including quotas) in investment in fishing and fish processing.

According to the press service of the Ministry of Agricultural of the Russian Federation, the project will allocate a quota for the construction of various types of fishing vessels and fish processing factories with a capacity from 2.5 tons to more than 75 thousand tons of raw materials per year, in correspondance with project conditions of localization, the objects of investment, etc.

As it was explained to the magazine “E-Vesti” in press-service of project’s co-author Federal Agency for fisheries: “for the First time we see in the Russian practice an innovative mechanism, when the intangible assets are used to attract large-scale material investment.” The Agency expects the adoption of the document in the first quarter of 2017.

According to the Federal Agency for fishery of Russia, the total volume of investments in fixed capital aimed at the development of fisheries and aquaculture for the period 2010-2016 amounted to about 79 billion rubles, the development of processing – about 21 billion rubles.

According to the Agency, the mechanism will allow to raise about 200 billion rubles of private investment in 5-7 years, thereby to significantly increase the industry’s contribution to Russia’s GDP. It is planned to create a high-tech fish processing enterprises in the major coastal regions of the country, to build 50-60 modern fishing vessels that will upgrade fishing capacity by about 50%.

For Russian consumers, the proposed mechanism of state support of fisheries and aquaculture will create conditions to expand the range and increase the availability of quality fish products.

Sources: Russian Ministry of Agriculture, Russian federal agency of fishing