Uncertainty in Russia's fishing industry, critical debt and possible crises

Published 2024년 12월 26일

Tridge summary

The fish industry in Russia is grappling with a significant debt crisis, with a total debt of 1.04 trillion rubles, including 700 billion rubles owed to credit institutions, as per VARPE estimates. This debt has grown dramatically, nearly six and a half times since 2017, while industry profits have seen only a modest increase. The industry faces challenges, especially with the need for significant financial resources for the re-registration of fishing area contracts in 2025. Many companies are expressing concerns about their ability to meet these financial demands without the support of bank loans, exacerbating their financial vulnerabilities. The industry's woes are largely due to the 'investment quota' program aimed at stimulating renewal of fleet and processing capacity, which has resulted in a heavy reliance on loans and increased financial strain due to high interest rates.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to VARPE estimates, the total debt of the fish industry amounted to 1.04 trillion rubles, of which 700 billion rubles are debts to credit institutions. Kostyna emphasizes that it is important to distinguish between these amounts, since debts to banks carry a large financial burden. In contrast to other agricultural sectors, where various lending programs are available, the fishing industry can only rely on limited benefits. Kostyna notes that since 2017, the credit burden in the fishing industry has increased almost six and a half times, while profits have increased only 1.3 times. A critical situation awaits salmon fishers. In 2025, the process of re-registering contracts for fishing areas will begin, which may require significant financial injections. Some companies are already stating that they will not be able to continue without bank loans, which increases their vulnerability. The “investment quota” program, launched several years ago to ...
Source: Fishretail

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